UBS-INSEAD Study

on Family Philanthropy
in Asia

In partnership with:
2
Table of Contents

Introductory Remarks 4

Acknowledgements 6

Executive Summary 8

Introduction 11

The Family and Giving 16

The Focus of Giving in Asia 24

The State of Institutionalized

Family Philanthropy in Asia 42

Principal Findings and Outlooks 55

Country and Philanthropist Profiles 59

Research Methodology 115

Research Partners 118

Appendix 120

3
Introductory Remarks

What characterizes Asian

family philanthropy?

4
Dear reader,
Almost no other region in the world has changed so funda-
mentally over the last few decades as Asia. Most prominently,
its economic growth has developed from a noted but regional
success story to an engine of global economic development,
most obvious in the recent financial and economic crisis.
Along with this economic success story came a fundamen-
tal change in the daily lives as well as underlying cultures of
people in the region. Local communities have become more
globalized, habits and customs have changed, and populations
have become more urbanized.
But these changes have not been without challenges.
Rapid economic development has not always led to sustain-
able or equitable distribution of wealth. Absolute poverty
is still a daily threat to many and overexploitation of natural
resources remains a concern.
What has endured all change is the family as the prime build-
ing block of Asian societies and, consequently an exceptionally
strong sense of responsibility towards enabling future genera-
tions’ well-being through sharing and engaging for social
good.
And so it comes as no surprise that the growing awareness
of the topic of philanthropy which we have seen globally is
mirrored within Asia. Family philanthropy has had a long and
distinguished history among Asia’s wealthy.
But what exactly characterizes Asian family philanthropy?
How much is it influenced by Asia’s rich philanthropic history –
some of the region’s largest foundations trace their origins
back to the early last century? Will it be a carbon copy of West-
ern philanthropy, most prominent above all the highly ­visible
US philanthropy, or will there be the emergence of a ­distinctly
different type of Asian philanthropy? And what will be
required to enable the growth of family philanthropy in Asia
not just in volume but even more in impact in the future?
Kathryn Shih
CEO UBS Wealth Management Asia Pacific
UBS has been offering dedicated philanthropic support
to its key clients globally for over a decade. In Asia, we have
been serving clients for over 40 years. Answering these
­questions is essential to maintaining our role as a pioneer and
thought leader on the topic of philanthropy.
We hope that our findings will further Asia’s existing family
philanthropy, encourage many families to enter this exciting
journey and help the public and civil sector in general and
governments in particular to identify supporting measures to
grow and develop philanthropy in Asia.
Therefore, UBS is honored to present what can be con­
sidered a fundamental contribution to the effort of furthering
family philanthropy in Asia, the UBS-INSEAD Study of Family
Philanthropy in Asia.
We are proud to have conducted this research in partnership
with INSEAD, an academic leader globally and regionally on
the topic of philanthropy and social innovation. This collabora-
tion is a practical manifestation of what we consider a key
­success factor in philanthropy – partnership.
Our sincere gratitude goes also to all those who have con­
tributed to this research and the many Asian philanthropists
who have openly shared their philanthropic vision, activities
and plans. With over 200 surveys and over a hundred per-
sonal interviews, they have made this report the most com-
prehensive insight into philanthropy among wealthy Asian
families to date.
Finally, we hope that the transparency and insights this
report provides on the current status of family philanthropy
in Asia, as well as the outlook on how to unlock further
­potential, will contribute to the continued prosperity and
­sustainability of Asia’s development.
Sincerely.
Dr. Mathias Terheggen
Head of UBS Philanthropy Services
5
Acknowledgements
This report would not have been possible without the contribu-
tion, time and patience of the many philanthropists, foundation
professionals and sector experts we interviewed.
We are very grateful to all the philanthropists, and their fami-
lies, who agreed to speak to us and also took the time to
respond to the survey. Many of these participants are featured
in the report and many more have chosen to remain anony-
mous. In agreeing to discuss openly with us their aspirations and
experiences, they have enabled us to better understand what
drives and motivates Asian families to engage in philanthropy.
We are also thankful to all the professionals working for
­family foundations who shared the successes and the chal-
lenges they face in their daily work. In explaining their experi-
ence of t­ ranslating a founder’s vision into concrete under­
takings on the ground, they provided us with many exciting
and inspiring insights.
Finally, we are also very grateful to all the experts who pro-
vided us with an understanding of the social and institutional
contexts within which Asian philanthropists and their families
operate. They have enabled us to broach the question of just
what constitutes “Asian philanthropy.”
Our thanks again to all the individuals who made this report
possible.
7
Executive Summary

Much is known about the growth in wealth in Asia over

the past few decades. Yet the accompanying ­transformation
of Asian philanthropy remains largely undocumented.
UBS and INSEAD investigated the changing face of family
giving in the region to shed new light on family philan-
thropy and support its ­development.
Almost no region in the world has changed so fundamen-
tally over the last few decades as Asia. Despite its newfound
wealth, however, the region continues to be beset by serious
social and environmental issues. This new climate has con­
tributed to a growing awareness of the role of philanthropy,
and family philanthropy, in the region, as well as to growing
scrutiny of the subject.
Family philanthropy has a long history in Asia, but what char-
acterizes Asian philanthropy? Does it resemble philanthropy in
other parts of the world, or is there a distinct “Asian way”
of giving?
Building on over 200 quantitative surveys and over 100 in-
depth interviews, the UBS-INSEAD Study on Family Philanthropy
in Asia highlights the philanthropic aspirations and challenges
of Asian families. It provides one of the most ­comprehensive
insights to date, key outcomes of which are outlined below.
A Multitude of Motivations
The “urge to give” is a universal human trait and families
in Asia, like their peers across the globe, have multiple motiva-
tions to get involved in philanthropy: the urge to give back
to the community, to realize religious or ethical convictions
or to better society as a whole. Beyond these self-evident con-
siderations, the number one reason for engaging in philan-
thropy – cited by 42% of the people and organizations
­surveyed – was “ensuring the continuity of family values or
creating a lasting legacy.”
The family unit plays an important role in driving philan-
thropy in Asia, and families also reap many benefits from
­philanthropy, which they often actively seek out:
• It teaches principles like compassion, courage and
tolerance.
• It fosters capacities for leadership, innovation and
responsibility.
• It supports family cohesion by providing a common activity
and goal for the family to pursue as a unit.
The rapid pace of change across Asia has led to the emer-
gence of families with several generations whose experiences
and aspirations have been molded by vastly different lives.
This is reflected in how different generations engage in phi-
lanthropy:
• The older generation feels more responsible to the local
community and is more influenced by tradition, while the
younger is increasingly geared to national and international
causes (while 32% of the older generation gives to the
local community, only 20% of the younger does).
• The older generation focuses on sectors such as educa-
tion, health and poverty, while the younger is more open to
sectors such as the arts, civil rights and the environment.
• While the older generation tends to see giving as an end in
itself, the younger generation tends to be more interested
in measuring the impact of giving.
In spite of these differences the families interviewed explained
that philanthropy plays an important role in generating cross-
generational cohesion, which is critical to the success of the
family, of its philanthropy and even more so of the family busi-
ness – as these are very often closely linked.
The Focus of Giving in Asia
Looking at where Asian families direct their philanthropy,
affiliation plays the most important role. Families give most
to their home country (70% of family giving is directed to
national-level causes), to the country they emigrated from or
to their own ethnic or socio-linguistic communities. However,
this is changing, and philanthropists in wealthier Asian coun-
tries are increasingly looking to act in less advantaged regions,
even where no affiliation exists.
Asians give by far the most to educational causes (36% of
­giving in 2010), followed by poverty alleviation and develop-
ment (10%), health (9%) and disaster relief (5%). This empha-
sis on education is not surprising considering the extremely
important role education plays in many Asian cultures. Despite
the importance placed on engaging in poverty alleviation and
development, government bodies and non-governmental
agencies that dominate this sector are not geared to accom-
modating family philanthropies, thus hampering their impact.
Families across Asia make relatively low levels of contribu-
tion to sectors such as the arts and culture (4% of giving in
2010), civil rights (1%) and the environment (4%). Religious
conviction and sensibilities are major motivators for Asian
­philanthropists. However, there is little emphasis on system-
atic, structured contribution to religious causes – as is seen,
for example, in the US.
9
Social entrepreneurship is an important emerging trend in
Asian philanthropy. Of the families interviewed, 36% consider
social entrepreneurship the most important trend for the
future. If the enthusiasm for running their philanthropies is
anything to go by, social entrepreneurship has a bright future
among families in Asia.
A Family Affair
Although there are notable exceptions, there is less profes-
sionalization of philanthropy in Asia when compared to other
parts of the world. That said, the hiring of experts to run fam-
ily foundations and projects is a growing trend in the region.
Many of the new foundations which go this route are also
­following international best practices from the outset, thus
benefitting from the experience of others.
In general, when considering the principal challenges to
the development of a much larger and more effective Asian
philanthropic sector, there is a strong need for:
• more effective, scalable and transparent implementation
partners.
• greater collaboration and pooling of resources.
• more professional management at the philanthropy level.
• more training institutions and sharing of best practices.
• more supportive government regulations and policies.
Building Institutions
Creating a foundation through which to pursue family
­philanthropy is a recent phenomenon in Asia, even though
some were created as far back as the late 19th century.
Their business is also an important vehicle through which
families engage in philanthropy – through a corporate foun-
dation, a company’s CSR arm or other diverse means. Further-
more, the family business remains an important source of
funds: 22% of the families studied reported company profits
as providing funding for their philanthropy.
10
Looking Ahead
Asia continues to face large-scale social and environmental
challenges. With governments having trouble delivering social
services, there is ample room for philanthropists to make
important contributions.
What Will it Take to Make a Real Difference?
There is a great deal of business confidence in Asia these days,
with entrepreneurs who are forward-looking and willing to
take on large, international challenges. It is very encouraging
to see this confidence spilling over into the philanthropic sec-
tor. Indeed there is an increasing focus by the younger genera-
tions of established wealthy families and emergent entrepre-
neurs on addressing the root causes of problems, as opposed
to simply alleviating symptoms.
With philanthropy already a very important part of many
large wealthy families, those families which accommodate the
aspirations of different generations and allow all voices to be
heard will likely have the greatest influence. While the strong
community orientation of Asian families is a strength, it needs
to be balanced by considerations of impact. It is not always
enough to give where one wants to; it is often better to give
where there is the most need.
While these are all exciting developments, family philan­-
thropy­still has a long way to go before it can have a sus-
tained, transformational impact in Asia. Family philanthropy
will need to become more strategic in its focus, more
­collaborative in its orientation and more professional in its
conduct. Asian philanthropists will also need to learn to be
more demanding of their partners as well as of government.
They should also look at how they can advance the profes-
sionalization of the sector by contributing to developing its
infrastructure.
These are all tough challenges. The passion and enthusiasm
expressed by the families interviewed in the context of this
research leaves no doubt that Asian families will rise up to
these challenges. This bodes well for the future of the sector
as a whole and its ability to make a sustained, positive impact
in the region.
Introduction

From Economic Success to

Social Significance  
By Dipak C. Jain, Dean of INSEAD

The last decade has proven to be an Asian decade with

several Asian countries rising to prominence on the world
stage. The heads are turning notably towards India and China
as they leap ahead with an impressive GDP growth rate and
consumerism. However, it has also given rise to a big social
challenge – the rising disparity of incomes.

This inequality is a fundamental reality of the new economic

growth model in Asia and it should not be ignored. The issue
of income inequality is further compounded by the process
of globalization that acts as a force of gravity. In order to deal
with this challenge of increasing disparity, it is important that
beneficiaries of this phenomenal growth start contributing
to those who have not benefitted as much. This is where social
entrepreneurship and philanthropy have an important role
to play.

Business entrepreneurs create new ventures with revenue

and profits as their performance indicators, social entrepre-
neurs devise solutions for social issues with social wellness and
betterment of society as their success criteria. Here success
is defined by significance in terms of creating a better society.
I like to refer to it as a journey from “success” to “signifi-
cance.” Just as corporations today are focusing on Corporate
Social Responsibility (CSR), I feel the successful entrepreneurs
of today should think in terms of Individual Social Respon­
sibility (ISR). Successful entrepreneurs in India and China
should support social entrepreneurs or non-profit organiza-
tions in their respective countries. In my opinion, for philan-
thropists, helping social entrepreneurship reach scale means
not only a bet on smart people tackling big problems but also
using their vision and business skills to build an ecosystem
capable of sustaining social entrepreneurship worldwide, thus
progressing from “success” to “significance.”
My father always told me that children went to school to learn
the three Rs of Reading, (W)riting and (A)rithemetic. However,
at this juncture of our lives, it is time to re-coin these Rs to
Reflection, Renewal and Responsibility. It is important that we
build such a culture of philanthropy among youths growing up
in the Asian region. This should be a key responsibility of
elders in the society.
Philanthropy helps to cultivate socially responsible leaders since
it means that they do not just push for maximum personal gain
for themselves or their family. Instead, they regard the larger
social fabric and seek to make a positive difference in the lives
of others.
The milestone of my journey from “success” to “significance”
is my association with the Asian University for Women (AUW).
An extraordinary initiative of which Cherie Blair is a patron,
What are the principal challenges
facing family philanthropy in Asia?
What is the outlook, in terms
of opportunities and challenges,
for family philanthropy in Asia?
and which she spoke about at the UBS Philanthropy Forum
in Singapore 2010, the AUW is an apt example of the inter­
section of philanthropy and social entrepreneurship. AUW
provides a world-class education to young women from
diverse cultural, religious, ethnic and socio-economic back-
grounds from across South and South East Asia and the Mid-
dle East including Afghanistan, Bangladesh, Bhutan, Burma,
Nepal, Sri Lanka, Cambodia, India, Pakistan, Vietnam, Iran
and Palestine. Located in Chittagong, Bangladesh, AUW is a
unique project that puts ‘purpose’ before ‘performance’ –
and strives for a better world with global prosperity and peace.
I hope that philanthropic projects such as AUW are merely
seeds in a garden which is waiting to see a million flowers
bloom and spread their fragrance around the world.
I hope that the Asian success story isn’t merely limited to
­headline growth rates and the number of millionaires.
Instead, by weaving the culture of philanthropy in our social
foundations, we are able to set a benchmark of “giving back
to society” for global peace, prosperity and harmony.

11
Philanthropy in Asia, a Contextual
­Perspective
The Urge to Give
Soichiro Fukutake’s father had a dream: “I want to create an
island of dreams for children.” In 1989, the son started to
bring alive the father’s dream by leading the transformation of
the small island of Naoshima into a center which commingles
the experience of art and nature. Today, this island off the
Japanese coast is world famous for its indoor and outdoor art,
its innovative fusion of nature and architecture and its wel-
coming embrace of artists, architects, naturalists and visitors.
Some philanthropists are dreamers looking to share love and
happiness. Others decide they must act to address social or
environmental needs that are not being addressed. In both
cases, philanthropy involves a lot more than simply “giving
and forgetting.” In its fullest expression, philanthropy involves
understanding and compassion, giving money and volunteer-
ing time, making sacrifices and inspiring others.
The roots of the term ‘philanthropy’ might be Greek,1 but
the phenomenon is global. Despite publicity surrounding the
Gates-Buffett giving pledge and the great philanthropists born
in Europe and the Americas, philanthropy is just as much an
Eastern practice as it is Western. As Rahul Bajaj, chairman of
Bajaj Group, once explained in an interview to the Times of
India newspaper: “India has a culture of giving since the time
of Buddha. The concept of philanthropy is not new to us.”
The Asian region is the birthplace of many of the world’s
mainstream religions, including Buddhism, Confucianism,
Hinduism and Taoism, each of which have traditions that
encourage practices and approaches to giving as an element
of “living the faith.” And Asian families tend to be closely-
knit, both internally and with the communities to which
they belong: giving is an essential aspect of realizing oneself,
of perpetuating family values and of strengthening the
­community.
The Asian Environment
The increase in prosperity across Asia over the past half
­century has been breathtaking and unprecedented. It has
been only about thirty years since Deng Xiaoping affirmed:
“To get rich is glorious;” China now has over one million
­dollar m
­ illionaires. In recent years, Indian households have
witnessed the highest absolute gains in wealth in the world.
In the ten countries covered in our report, the average per
capita income has risen from under US$ 10,000 in 1995 to
almost US$ 21,500 in 2005.2
The financial crisis has not slowed down the accumulation
of wealth in the region: since 2008, high net worth individuals
1 The origin of the word is philanthropia which means “love for mankind” in Greek.
2 CIA Factbook, IMF World Economic Outlook 2010
12
(HNWIs)3 in Asia-Pacific have increased by 25.8% in terms
of numbers of individuals and 30.9% in terms of total wealth.
By the end of 2009, there were some three million Asia-Pacific
HNWIs, equaling the number in Europe for the first time, and
their wealth totaled US$ 9.7 trillion. Japan and China com-
mand around 65% of total Asia-Pacific HNWI wealth.
Emerging Asia (China, India, Indonesia and Thailand) is
fast becoming the main engine of growth in the Asia-Pacific
region, and its HNWI population showed robust growth of
33.2% in 2009, with wealth increasing by 40.4%. Going for-
ward, China and India are likely to remain the fastest-growing
HNWI segments in the world, based on the positive outlook
for market and macroeconomic drivers of wealth for those
economies and the Asia-Pacific region as a whole.4
But, as Deng Xiaoping had cautioned, the road to prosperity
is not even and many millions have been left behind. Across
almost every country in Asia, there lie substantial if not grow-
ing problems of income disparity, inequality of access to social
services, justice and environmental sustainability. In sheer
numbers, the continent is still the largest locus of poverty and
deprivation in the world: in 2005, there were over 660 million
people in India and China alone who lived on less than
US$ 1.25 per day. In India, the wealthiest 5% of the popula-
tion control 40% of the country’s wealth.5 Urban migration is
causing immense dislocations in Asia, with 120,000 people
moving every day from rural to urban areas across the conti-
nent.6 In terms of CO2 emissions, China is now the world’s
leading country, just as Asia is the world’s leading continent.7
The Regional Need
At the 2010 UBS Philanthropy Forum in Singapore, Kishore
Mahbubani noted: “The challenges in Asia are great,” and
asserted that lifting Asia’s population out of poverty would
be a major contribution to saving the world. In his speech,
he emphasized that philanthropy could in no way act alone
in this matter: “That scale cannot be done. It has to be the
result of development, of commitment on the part of the
Asian countries […]”
While government and industry will remain critical engines
for addressing Asia’s many challenges, individual and family
philanthropy has a role to play. And philanthropists across
Asia are beginning to fulfill this role: as catalysts for change;
as galvanizers of public support; as risk takers who support
new ideas and social entrepreneurs; as incubators of new
­initiatives; and as solution providers where government and
industry come up short. In the Philippines, a private effort led
by philanthropist Regina Lopez galvanized the ­rejuvenation
3 HNWIs are defined as those having investable assets of US$ 1 million or more,
excluding primary residence, collectibles, consumables and consumer durables
(Capgemini – Merrill Lynch Asia Pacific Wealth Report 2010), p.4
4 Capgemini Asia Pacific Wealth Report 2010
5 Arpan Sheth. An Overview of Philanthropy in India. Bain & Co. Report, 2010.
http://www.bain.com/bainweb/PDFs/cms/Public/India_Sheth_Speech.pdf
6 ADB Website
7 IEA 2010 Report Emissions from Fuel Combustion
of the main river running through Manila. Mechai Viravaidya
is well known as the Thai ‘condom king’ and the entrepreneur
behind the Cabbages and Condoms ­restaurant in Bangkok.
His activist involvement in reproductive health has contributed
to a dramatic reduction in HIV rates in the country.
As of yet, charitable giving across Asia has not caught up with
the burgeoning needs of the continent. In India and China,
philanthropic contributions constituted only 0.6% and 0.1%
of their GDP (as compared to 2.2% in the United States).8
There is accordingly a tremendous opportunity and challenge
for successful families across Asia to have a transformational
impact on the social, economic and environmental challenges
facing the continent. If faith and community are the spark for
philanthropy to flourish in Asia, economic prosperity and eco-
nomic disparity are likely to be the fuel that will trigger an
explosion of family philanthropy. With Asia leading the world
in knowledge and wealth creation, one can also expect it to
soon lead the way in giving as well.
Structured Family Philanthropy
The family foundation is one of the most personal and most
established vehicles for family philanthropy. Most donors who
create family foundations do so with three main goals: to
make a difference to society, to engage with their families
through giving, and to leave a legacy for generations to come.
In Asia, where business is largely a family affair, and where
wealth is usually no more than three generations old, the
landscape of family philanthropy is emerging. Across the con-
tinent, stories abound of family members who started out
with very little, worked their way to substantial wealth, and
after finding themselves with more money than needed,
turned to philanthropy to do something meaningful and con-
tribute back to their community.
8 Arpan Sheth. An Overview of Philanthropy in India. Bain & Co. Report, 2010.
http://www.bain.com/bainweb/PDFs/cms/Public/India_Sheth_Speech.pdf
These individuals have become a force for good for their
­families, instilling values of hard work, compassion and gener-
osity that last for generations to come. These values often
form the legacies of many family philanthropic endeavors and
foundations. “Family foundation” is not a legal term and
therefore has no precise definition. The Council on Founda-
tions in the US defines a family foundation as a foundation
whose funds are derived from members of a single family. At
least one family member must continue to serve as an officer
or board member, and they or their relatives play a significant
role in governing and/or managing the foundation throughout
its life. Family foundations may move from being solely
directed by the original donor to having decisions made by the
board with multiple generations of the original donor’s family
and sometimes the involvement of non-family ­members.
In the US, philanthropic families gave away, through their
family foundations and donor-advised funds, more than
US$ 25 billion in 2007. The world’s largest foundation is a
family foundation – the Bill & Melinda Gates Foundation. In
setting up this philanthropy, Bill and Melinda Gates studied
the work of John D. Rockefeller, whose name is associated
with one of the best known examples of family philanthropy
today. But, while family philanthropy draws inevitable com-
parisons to the work of the likes of Gates and Rockefeller,
it is worth considering that these are exceptions. In the US,
most family foundations have less than US$ 1 million in assets.
Large or small, formal or informal, family foundations are
important vehicles for sustained family contributions to social
and e­ nvironmental causes.
While philanthropy is an age-old tradition in Asia, structured
family philanthropy is a relatively new phenomenon. Of the
203 family philanthropic initiatives we surveyed for purposes
of this report, more than 75% were established as formal phi-
lanthropies since 1980 and more than 60% were established
since 1990. And, among our respondents, 45% of funding for
regional philanthropies came from first generation businesses.
The opportunities and challenges of structured, sustained
family giving in Asia are still largely ahead of us.
13
This Report
With this report, we aim to support the advancement of family
philanthropy in Asia by highlighting the philanthropic aspira-
tions and challenges of families in Asia, and by creating visibility
with regards to the purposes, scope, organization, and opera-
tions of family philanthropies in Asia. In particular, we have
asked and sought to answer the following questions:
14
• What are the principal family-oriented motivations
for giving in Asia?
• What are the principal differences in orientation among
­different generations and ‘new money’ and ‘old money’
across Asia?
• What are the principal drivers that determine the focus of
­giving across Asia?
• What is the state of institutionalized family philanthropy
in Asia?
Our report is based on quantitative surveys of over two
­hundred individuals, groups of individuals, philanthropic
­foundations and trusts and family businesses engaged in
­substantial philanthropic activities that are principally based
in mainland China, Hong Kong, India, Indonesia, Japan,
­Malaysia, the Philippines, Singapore, Taiwan and Thailand.
We have also conducted, for purposes of our report, over a
hundred in-depth interviews of academics, entrepreneurs,
government servants, philanthropists, professionals and
social entrepreneurs in these countries. More detail about the
interviewees and survey takers can be found in the Research
Methodology section.
While our research and interviews by no means present an
exhaustive picture of a vast and dynamic subject, we believe
we have managed to provide a panorama of the rapidly evolv-
ing landscape of family philanthropy in Asia.
15
The Family and Giving

Principal Insights:
– Family philanthropic activities play a critical
role in (1) instilling family values, (2) develop-
ing cohesion, (3) expanding roles of family
members and (4) developing capabilities.
These factors are particularly relevant in Asia,
where the family continues to be an excep-
tionally strong locus for business and philan-
thropic activities.
– The rapid pace of change across Asia has
led to generations within families with vast
differences in experience and aspirations. In
the case of families that manage their busi-
ness or philanthropic activities as a unit, strat-
egies for accommodating inter-generational
differences are critical to the success of the
family business or the family philanthropy.

Family-Oriented Motivations
As in other parts of the world, families in Asia have a range
of motivations for their philanthropic activities. Some of these
motivations have an outward focus, such as the desire to
impact a particular community, address a social problem or
achieve a pragmatic objective. Some of these motivations are
somewhat more internalized, such as the desire to perpetuate
family values or build cohesion within the family. In this sec-
tion, we will explore the internal motivations that compel
families in Asia to make philanthropic contributions and the
ways in which this activity in turn shapes or divides families.
In most countries in Asia, families tend to be large, complex
and closely integrated. The family often constitutes the
locus for the political, social, business and philanthropic
­orientation of individual members. For example, the Aboitiz
family from the Philippines now has 400 members living
around the world, who have myriad interlocking business
and philanthropic interests. To maintain cohesion, the family
has adopted a ‘family constitution,’ a formal system to keep
branches of the family informed about developments and
which includes a regular five-year family reunion.
Appropriately, the philanthropic activities of families in Asia
are often driven by a range of family-related and other altruis-
tic and pragmatic motivations:

Main Factors Inspiring Families’ Philanthropy (% of Respondents, 2010)

Ensuring continuity of family

42%
values / creating a legacy

Education and involvement

39%
of the next generation

Personal or
34%
family causes

Family
tradition 26%

Strengthening
family bonds 13%

Family governance or
tax considerations 5%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Typically, family-oriented motivations for philanthropy form

a dense, interrelated cluster; these motivations combine
to create forward momentum in developing philanthropy from
an individual impulse to an inextricable part of the family
­culture.

16
 The Tan Chin Tuan Foundation

Multiple Drivers for Giving

The Tan Chin Tuan Foundation in Singapore is an example
of a family philanthropy with a wide variety of motivations
for its giving. It was originally founded in 1974, when
Mr. Tan Chin Tuan decided to formalize his personal giving
by setting up The Tan Chin Tuan Foundation.
Because of his father’s premature demise when he was
16 and the imperative of working to look after his widowed
mother and younger brother, Mr. Tan forwent the opportuni-
ty to obtain a university education. As such he always felt
strongly about education. He was mainly active in the educa-
tion and poverty relief sectors, the importance of which
became a tradition that he passed on to his children and
grandchildren as they became involved in the foundation.
Currently, his daughter and three grandchildren are active in
the foundation, which provides a common forum that draws
them together.
The foundation focuses on supporting the disadvan-
taged members of society: the impoverished, the elderly,
those with limited access to medical care, and children with-
out means to receive a basic education. Initially addressing
these societal needs on a case-by-case basis, the founda-
tion now carries out thorough due diligence
as part of the procedures they have established for their
grantmaking process, as well as tailoring a suite of support
for their benificiaries that goes beyond cash disbursements.
The foundation also tries to multiply the effect it has on the
larger societal problems by bringing together operational
organizations it works with that address similar issues, and
encourage exchanges of ideas, experiences, mistakes and
best ­practices.

Family-Oriented Motivations for Giving in Asia

Although family-oriented motivations for giving in Asia are Instill Family
most often combined they may be divided into four principal ­Values
categories: – Within Family
– Within Business
– Within Community

Develop Develop ­Cohesion

­Capabilities – Within Generations
– Leadership and – Across Generations
­Management
– Reverse Mentoring

Expand Roles
– Patriarchs/
Matriarchs
– Spouses
– Younger Generation

17
Instill Family Values
In Asia, as in other parts of the world, philanthropy enables
family values to acquire tangible form and be driven through
the different generations. The influence of these values can
also reach the larger community around the family.
Values Expressed Through Family Philanthropy
Change: Making a difference
Community: Feeling a meaningful connection to a
group of people
Compassion: Feeling sympathy, care, or concern for
others
Courage: Standing up in the face of fear or
adversity
Equity: Being fair and free from bias
Freedom: Having the ability to exercise choice and
free will
Gratitude: Having a sense of appreciation and
thankfulness
Innovation: Finding new and creative ways of doing
things
Justice: Pursuing what is fair and morally right
Leadership: Motivating others to work toward
achieving a common purpose
Loyalty: Being devoted to a person, ideal, duty
or cause
Obligation: Committing to fulfill a duty or promise
Opportunity: Having the chance to progress or
advance
Personal growth: Pursuing new skills and self-awareness
Recognition: Being publicly noted for one’s efforts
Responsibility: Voluntarily doing what is expected
Risk: Exploring the unknown by testing
limits; being willing to fail
Spiritual growth: Seeking connection to a higher purpose
Tolerance: Respecting the beliefs, practices, or
innate differences of others
Tradition: Valuing a practice, custom, or story
passed through generations
Within the family, philanthropic activity can enable family
­values to acquire concrete meaning. Through concrete finan-
cial and personal commitments like contributions and volun-
teerism, families can display to the community their commit-
ment to help solve social issues.
Doña Consuelo “Chito” Madrigal, the founder of a Philip-
pine foundation, always placed a high value on the capacity
of individuals and institutions to become self-reliant. Initially
under her leadership, and now under the leadership of her
niece, the family foundation continues to focus strongly on
supporting projects, individuals and institutions that are able
to achieve sustainability. This focus on sustainability also
enables the foundation to free up its resources to invest in
new projects and thereby widen its impact.
18
Atty. Felipe Gozon
A Tradition of Values
Atty. Felipe L. Gozon, Chairman and Chief Executive
of GMA Network, Inc., one of the largest media net-
works in the Philippines, comes from a family where
­values that are formed by the experiences of one gene­
ration are passed on to the next. The example that the
older generation sets in its giving serves as a model to the
younger generation, so that values such as compassion,
responsibility and tradition are formed naturally in the
hearts of the young.
Atty. Gozon’s childhood memories of life during World
War II deeply influenced his attitudes toward philan-
thropy. There was a food scarcity at the time, and occu-
pying ­Japanese soldiers were sequestering all the food
they could find from the local people. Atty. Gozon’s
grandmother insisted on sharing their family’s available
beans with neighbors who didn’t receive any, so that they
wouldn’t contract beri-beri from lack of protein. This was
one of many incidents that influenced Atty. Gozon and
his decision to pursue philanthropy.
Atty. Gozon and his immediate family, his mother,
and his brothers and sisters are directly involved in the
family philanthropy, which serves as a vehicle to bring
them together. They “play it by ear” with regards to crite-
ria in choosing grant recipients, while informally consult-
ing friends and family members who are knowledgeable
about the activities being proposed. Funds are distributed
based on availability within the foundation, and the needs
of the applicants. “I believe that the desire to help and
engage in philanthropy must come from the heart and
should not be colored by any ulterior motive,” he says.
Philanthropic giving can also exemplify values held by the
family to those involved in the family business. In Asia, family-
driven business and philanthropic activity is often conducted
in tandem, so philanthropic activities are made visible to
employees and in many cases conducted through the family
business. An important motivation for such conduct is to drive
adoption of family values by employees and business part-
ners. A number of leading family philanthropic efforts in the
region include employees in their activities. The Cathay Char-
ity Foundation in Taiwan is closely linked to corporate compa-
nies also founded by the Tsai family, and encourages volun-
teerism among the corporate employees in the service of
disadvantaged members of the community. Some employees
continue this kind of community service outside of the pro-
gram on their own volition.
Manifesting family values can also have an influence on
increasing charitable activity in the larger community. Contri-
butions to the family’s ethic, religious and social community,
and to specific causes that are close to the family and which
affect the community, can provide a model for others in
the community to make contributions. As philanthropists in
Thailand, Kathy and William Heinecke provide scholarships
to students in need, and hope that these students perform
charitable acts in their communities in return.
Develop Cohesion
The motivation of developing cohesion is also an important
driver: philanthropic activities can unite families in the pursuit
of a common goal. In the case of Asian families that have
acquired wealth more than one generation previously, the
cohesive force of common business pursuits may start to
weaken. In the case of latter-day entrepreneurs who have not
involved their families in their business ventures, such business-
driven cohesion has never occurred. In all cases, the shared
activity of giving can strengthen family bonds, whether within
a generation or across multiple generations.
Close business partnerships among members of one genera-
tion (including siblings and cousins) is still very common in Asia,
especially in India, Indonesia, the Philippines and Thailand. In
such situations, family contributions to common causes through
a common vehicle play an important role in maintaining family
The Murugappa Family
Giving a Role to All the Generations
The Murugappa family traces its roots to 1760. The Group’s
business was setup in the early years of the 19th century by
Dewan Bahadur A.M. Murugappa Chettiar. Along with busi-
ness success came a commitment to philanthropy, drawing
on traditional values of supporting the village and local com-
munity. That commitment has grown today to include the
AMM Foundation and the Shri AMM Murugappa Chettiar
Research Centre, both of which are funded by corporate and
personal donations.
Beyond reflecting strongly rooted values, philanthropy
also plays an important role in helping the family manage
the interplay between the different generations involved
in the family business.
A strong family charter defines roles for family members
and the conditions under which each member of the family
can join the business. Adherence to those values and the
charter has allowed the family to remain a strong cohesive
unit. Here, philanthropy plays an important supplementary
role as an extension of the business.
Indeed according to the family charter, members of the
­family must resign their positions within the company upon
reaching 65 years of age. All of them take up a role within
the realm of the family philanthropy. For instance, the cur-
rent Managing Trustee of the foundation, Mr. M.V. Subbiah
solidarity. In the Philippines, Atty. Felipe L. Gozon and his
­brothers and sisters contribute and volunteer time to a single
family foundation. According to Atty. Gozon, this common
activity has drawn him and his siblings close together, just as in
the previous generation, his mother and her siblings partici-
pated in common philanthropic causes and also developed
extremely close personal bonds. Atty. Gozon’s family are also
active in the GMA Kapuso Foundation, the corporate giving
arm of GMA Network, in which he holds a substantial stake.
According to a ­Singaporean philanthropist: “Having a formal
institution helps to bring the family together because they are
fulfilling a common purpose as they realize that the family’s
wealth is being used for a worthwhile cause, to improve society.
Philanthropy can give younger members of the family a new
perspective on the harsh realities of life for underprivileged peo-
ple, and helps family members learn and appreciate the family’s
legacy as well as their own fortunate circumstances.”
Asian families tend to be large and highly complex, and in
many cases multiple or late-stage marriages result in family
generations spanning substantial spectrums in terms of age
and life experiences. In such circumstances, family philan-
thropy can play a strong role in building deep connections
across generations.
was previously Group Chairman. Mr. M. V. Murugappan
who retired as Chairman of a few of the major Group com-
panies, now heads the Research Centre of the Group as its
Chairman. Mr M. A. Alagappan, the immediate past Chair-
man of the Group, is presently mentoring the foundation’s
largest hospital, currently on an expansion program. Given
his own background as an engineer, Mr. M. M. Murugappan
the current Vice Chairman of the Group contributes time to
the Murugappa Polytechnic College, one of several institu-
tions funded by the foundation.
With philanthropy the family is therefore able to ensure
that older members continue to play an important role in
maintaining the values for which the Murugappa name
stands, while making way for the younger generations in
the family company.
As the family and business have grown, this system has
had to adapt and faces some challenges. The growth of the
group, far beyond its roots in Chennai, means the founda-
tion is considering supporting programs in far off states that
are not closely tied to the family’s community – and thus
not as close to the heart of the family. However, the biggest
challenge remains to involve younger family members into
the philanthropy. As a result, the family is also considering
expanding the scope of the foundation’s activities, to allow
other members to participate.
19
Expand Roles
Philanthropic activity is often used to create meaningful roles
for family members. Older generation members may focus on
philanthropy, thereby creating space for younger generation
members to assume greater responsibility in the business. Fam-
ily members who are not directly active in the business can lend
their energy and expertise through family philanthropy. In many
cases, philanthropic causes carry greater emotional and per-
sonal appeal than business activities, and enable philanthropi-
cally-minded participants to expand their role within the family.
There is a strongly held belief in Chinese, Indian and other
Asian cultures that the most fitting role for a member of the
older generation is to become a source of wisdom and to
­contribute back to the community. In many families in Asia, as
the next generation begins to mature, the patriarch or matri-
arch will progressively start to focus less on the business and
more on philanthropic activities. As his son took over the oper-
ations of Dr. Reddy’s Laboratories, Anji Reddy was able to
step back from running his company and dedicate more time
to his philanthropy, including the Dr. Reddy foundation which
he launched in 1996. Dr. Reddy has also continued to be
involved in his company’s research and development activities.
As in other parts of the world, spouses of successful entrepre-
neurs and professionals often play a critical role in advancing
family philanthropic causes. Such roles are often culturally
­reinforced in Asia. In traditional Chinese families, the woman
often assumes the role of keeping household accounts, attend-
ing to household matters, raising the family and giving to
­charity. The Dolores Children’s Fund, a program of the Ramon
Aboitiz Foundation in the Philippines, is run by the spouses
of the three Aboitiz brothers, and makes grants for organiza-
tions specifically focused on addressing children’s issues.
Family philanthropies typically create a space for members of
the younger generation to participate meaningfully in family
affairs, including members who cannot be fully accommodated
within the family business or are interested in philanthropic
causes but are not very interested in the family business.
20
Develop Capabilities
The strong emphasis on family business in Asia means that
practical training often has an ‘in-house dimension’ (although
increasingly members of the younger generation tend to work
at international investment and consulting firms before return-
ing to the family fold). For those family members who don’t
have experience in managing a business, the family philan-
thropy can play an important role in developing the capabili-
ties and knowledge necessary to eventually step into a role
that carries forward the family business.
The Tolaram Group in Singapore sees philanthropy as an
entry point for their younger generation, partly because of its
utility in providing operational experience that can translate
to effectively running the family business. They also gain an
understanding of the areas where the business is located,
such as Africa. Young family members start with narrow tasks
such as research, over time become involved in implementing
projects, and ultimately assume leadership roles.
The family philanthropy may also serve as a platform through
which younger family members versed in modern ways of
thinking and new technologies may influence the perspectives
of older family members. Because of the general deference
given across Asia by members of the younger generation to
members of the older generation, it is often difficult for such
younger generation members to guide their elders based on
their own insights and experiences.
Philanthropic activity provides a space for such reverse
­mentoring that does involve challenging elders in the cut-and-
thrust of the business world. Michele Dee-Santos, grand-
daughter of Ambassador Yuchengco, works full time for the
the Philippines’ AY Foundation which her grandfather
founded. As the Executive Vice President of AY Foundation
she implemented new guidelines and processes for giving
grants that ensure the foundation is able to capitalize on the
generosity of its founder. With new ideas Ms. Dee-Santos
was able to set in place a more strategic giving approach to
maintain the foundation’s funding balance while ensuring
it continues to adhere to the values on which it was created.
Inter-Generational Issues and Strategies
The on-going and exceptionally rapid political and econo-
mic transformation of Asia has created successive generations
within Asian families with vastly differing experiences and
prospects. There are stark differences between the present
two, and certainly three, generations of Asian family members
in terms of their exposure to war and political upheaval, eco-
nomic deprivation, the impact of the West and the globaliza-
tion of business. And each generation has experienced differ-
ently the shifting balance of tradition and modernity that is
defining every contour of society and culture in Asia.
While there are important exceptions, the following genera-
tional differences in attitudes and approaches towards philan-
thropy are reasonably typical across Asia and were generally
observed through our interviews:
Attitudinal Framework: For older generations, attitudes
and approaches towards giving are largely influenced by tradi-
tional religious and cultural attitudes. Younger generations
are increasingly influenced by Western and international
trends and practices.
Affiliation: The older generation feels a sense of responsi­
bility to the religious, ethnic and cultural community to which
the family belongs, while the younger generation’s sense
of responsibility is increasingly geared to national and inter­
national causes.
Sector: The older generation applies a strong focus on
­traditional sectors such as education, health and poverty alle-
viation, while the younger generation has a tentative but
increasing focus on sectors such as arts and culture, civil rights
and the environment.
Impact Measurement: Generally, the older generation is not
particularly focused on measurements of social impact, while
the younger generation is increasingly focused on supporting
causes that can be measured in terms of social impact and
return on investment.
Implementation: The older generation focuses on keeping
administrative costs low, using existing business staff and
entities and directly controlling projects. Younger generations

Strategies for Accommodating Inter-Generational Differences*

Model Success Challenge

Patriarchal/Matriarchal
Recognizing the differing aspirations of
younger generation family members, a patri-
arch has set aside “envelopes” or pools of
funds for each family member that may be
contributed by such family member in their dis-
cretion. Watching over their contributions, the
patriarch increases the size of the ‘envelopes’
of family members whom he determines to be
more dedicated and effective philanthropists.
Referring to the administration of the family
foundation, a third-generation Singaporean
philanthropist felt that at first “no one wanted
this job; it was shoved down my throat.” He
feels very limited by the constraints on causes
imposed by the older generations, for exam-
ple to fund advanced education for poor stu-
dents and not the arts, the disabled, or early
childhood education.

Collegial The decision-making process at the Tan Chin
Tuan Foundation involves the grandson, two
granddaughters, and the daughter of the
founder. While it takes more time to form a
consensus between them, each has the chance
to have their voice heard.
A leading family in Singapore has democra-
tized the decision making process, but with
‘grand­fathering’ of traditional philanthropic
commitments. Without a clear charter, the
family members are at somewhat of an
impasse, with the greatest negative impact
being felt by family members who want to try
innovative new ways of making contributions.

Managerial A leading family in Hong Kong has created A family in India has devolved control of its
three separate funds, with separate but mutu- 50-year old foundation to managers. While
ally supportive management to address the the foundation now obtains a significant
­orientations of different family members: ­portion of its funding from third parties, it
1. The founder oversees contributions to edu- has become excessively bureaucratized. New
cational institutions and for scholarships. initiatives have slowed down to a trickle.
2. The second generation members oversee a
fund with a broader mandate that includes
healthcare and disaster relief.
3. A second generation family member over-
sees a portfolio that invests in and provides
grants to social enterprises with earned
income strategies.

* We have kept respondents’ identities anonymous as per their request.

21
Geographic Distribution of Philanthropic Giving
(% of giving, 2010)
60 59%
 Younger
generation
50 49%
 Older
generation
40
32%
30
20%
20
15%
10%
10
0 largest numbers of poor in the world reside; where inequality
Local community National causes International (Asia)
are increasing engagement in scalable ventures involving
multi-party collaboration for the benefit of social entrepre-
neurs, and are willing to hire professional staff to run the
organization.
Political Influence: The older generation tends to be more
deferential to political and governmental actors, and tends to
shy away from politically sensitive causes. The younger genera-
tion tends to have higher expectations of government in terms
of efficiency and honesty and tends to be more willing to sup-
port causes involving civil and political rights and advocacy.
These generational differences play out differently in the
­context of the three business and philanthropic models most
prevalent in Asia:
• Patriarchal/Matriarchal Model. A strong patriarch or
matriarch defines and controls the agenda and the purse
strings and expects deference from other family members.
• Collegial Model. A group of family members work more or
less democratically to establish priorities and roles.
• Managerial Model. A professional management team
runs the business or philanthropic activities and reports to a
board, which typically consists of a mix of family members
and professionals.
The challenge of reconciling inter-generational differences
plays out differently for families that have adopted the Patriar-
chal, Collegial or Managerial Model. While it appears that the
Collegial and Managerial models are generally more capable
of accommodating differing aspirations between generations,
it is by no means given that adoption of any one model will
ensure success in reconciliation of inter-generational differ-
ences. The table on page 21 provides illustrations of success-
ful and unsuccessful adaptations of inter-generational differ-
ences across the three models.
22
Asian Giving: Perspectives of a
Philanthropy ­Practitioner
By Priya Viswanath, Managing ­Director, Dāna Asia
Sharing perspectives on the growth of wealth and giving
in the Asia-Pacific region is always an interesting challenge!
There is tremendous pride in belonging to a region that has
produced three million HNWIs with wealth of US$ 9.7 trillion
and from all accounts rebounding to levels seen before the
global financial crisis. Asia is home to the fastest growing
HNWI population and Japan and China commanded around
65% of total Asia-Pacific HNWI wealth.
On the other end of the spectrum is an Asia where the ­
abounds and large majorities have no access to basics –
food, shelter, health care or educational opportunities.1 Two
of the fastest growing economies in Asia – China and India –
are ranked by the Human Development Index (HDI) at 85
and 128 respectively.2
Philanthropic giving3 in Asia set against this backdrop of
opportunity and need has not grown significantly.
So what ails Asian Philanthropy? For over a decade I have
served organizations in Asia that attempted to play a bridging
role and facilitated philanthropic giving by individuals and
­corporations (wealth creators) to charities. The take-aways
from that journey have been many and of relevance today as
we study a young and emergent philanthropic sector in the
region.
The three biggest challenges facing philanthropy in Asia
today are lack of philanthropic leadership (among wealth
­creators), absence of analytics and research (knowledge for
advocacy – critical to the future of philanthropy) and trust
and accountability of non-profits (addressing credibility
issues – the key deterrent to engagement and giving). On a
more practical (execution) front – issues of professional man-
agement, absence of any real strategy to ensure long-term
sustainability, ability to scale and efficacy are issues the
HNWIs and UHNWIs struggle with given their entrepreneur-
ial nature and ambition.
1 According to the UN’s 2010 report which also considers the unevenness in
the distribution of wealth, health and education among a country’s people to
produce a new inequality-adjusted HDI (IHDI) which penalises countries according
to the inequality of their development. This reduces countries’ 2010 HDI scores
by 22% on average. China’s HDI is reduced by 23% and India’s by 30%, which
suggests that the former’s rapid development has been the more equitable (Deve-
loping Humans, The Economist Online, 4th November 2010)
2 http://www.nationmaster.com/graph/eco_hum_dev_ind-economy-human-
development-index
3 Philanthropic giving in this context to be read as “tax effective giving/gifts”
The UBS-INSEAD collaboration to address the knowledge
issue is therefore an important effort to bridge the knowledge
gap. Anecdotal data on philanthropists and their pledges pro-
vide inspiration, but in a knowledge economy, substantiated
data is important.

Across Asia there have been attempts by individuals and

­families to engage with philanthropy. In the recent past there
have been announcements by several HNWIs pledging their
wealth for philanthropy at the same time as Bill Gates and
Warren Buffett brought the Giving Pledge to Asia. From China
to Malaysia to India there have been commitments and
endorsement for philanthropy. What is interesting to note is
the substantive engagement of a new generation of entrepre-
neurs who are willing to undertake this journey.

One has to be cognizant of the fact that in Asia it is hard to

establish degrees of separation between family philanthropy
and company philanthropy/CSR. Often what is seen as individ-
ual or family giving is “company giving” now practiced
through the establishment of company foundations and
trusts. Funds flowing into these foundations include those of
owners, investors, employees and other stakeholders. In India
there is also the case of the Tata Group wherein Tata estab-
lished the Tata trusts which today controls 65.8% of the
shares of Tata Sons, the holding company of the group. There
are other examples of old wealth finding its way to charitable
foundations across the region.

Today the private wealth industry in Asia-Pacific offers
­philanthropy advisory and investment services to their clients.
There have been a number of big firms leading in this space
for a number of years and the result of that has been a more
professional engagement by HNWIs resulting in strategic
investments to developing world non-profits. In partnership
with philanthropy and development experts empanelled with
them (or staff recruited from the development sector), banks
and wealth management firms today provide professional
advice to clients resulting in sound grant making, establishing
philanthropy infrastructure (trusts and foundations) and edu-
cational programs/peer learning opportunities that help them
share and learn about philanthropic initiatives and practices.
The younger generation among Asian entrepreneurs is
­distinctly different. They are strategic and prefer to give to
projects that can give them a clear social return on invest-
ments. They bring business practices into non-profit ventures
and support social enterprises, micro credit, vocational train-
ing for employment and those projects which have ambition
and can scale. More hands on, they mentor and leverage and
bring a certain dynamism into their philanthropic ventures.
These new money entrepreneurs alongside old money philan-
thropists have a great opportunity to solve Asia’s biggest
problems. This also leads to non-profits stepping up and
responding to market demand.
“There is good sociological evidence that many high net
worth individuals and families are searching for personal
validation and meaning within their lives, and that philan-
thropy and service represent increasingly important ways to
achieve such meaning,” say colleagues at The Philanthropic
Initiative in Boston. As Asians lead the way in generation of
significant wealth, this search for meaning and validation at
the personal and regional level is bound to continue. Private
wealth bankers and investment managers will find it imper-
ative to support the aspirations of their clients and main-
stream this activity, beyond a simple value-add service.
Private wealth for public good is a non-negotiable in the
ultimate analysis. As Bill Gates, Founder of Microsoft
­Corporation and Co-Chair & Trustee of the Bill and Melinda
Gates Foundation, has thoughtfully remarked… “If you’re
in the luckiest 1% of humanity, you owe it to the rest of
humanity to think about the other 99%.”4 The future of
Asia will rest on the equitable distribution of wealth and
HNWIs will have a key role to play in ensuring “develop-
ment” of the region for a sustainable future.
4 http://thestar.com.my/news/story.asp?file=/2011/3/6/
nation/8194382&sec=nation

23
The Focus of Giving in Asia

Principal Insights:
– Family giving across Asia is driven by affilia-
tion (community, country, ethnicity, religion),
sector (education, health, etc.), impact (social
return on investment, problem solving)
and pragmatism (personal, business, etc.).
– The affiliation factor is the principal driver
of giving across most of Asia, with com­
munity, country and ethnicity being critical
­factors that determine the scope and
­direction of giving.
– Within sectors, families across Asia predomi-
nantly contribute to educational causes.
– Religion is an important source of inspira-
tion for philanthropy, but while religious ins­
titutions in a number of countries are well
­supported by a large flow of small contribu-
tions, there is surprisingly little emphasis
on systematic, structured contribution to
­religious causes.
– Contributions to poverty alleviation and devel-
opment form an important sector of contribu-
tions by family philanthropies. However, family
philanthropies appear to have a less-than-opti-
mal impact in this sector because the govern-
ment bodies and non-governmental agencies
that dominate this sector are not geared to
accommodating family philanthropies.
– Families across Asia make a relatively low level
of contributions to emergent sectors, such as
arts and culture, civil rights and the environ-
ment, and members of the younger generation
are the most avid supporters of such causes.
– Members of the younger generation among
more established wealthy families as well as
newly emergent entrepreneurs across Asia are
beginning to ask how they can deploy their
money and entrepreneurial capacity to address
the root causes of social and economic prob-
lems across Asia.

Taxonomy of Drivers
In addition to family-oriented motivations, the principal driv-
ers that inform the direction and scope of family philanthropy
in Asia may usefully be classified in a four-part taxonomy:
Affiliation, Sector, Impact and Pragmatism.
By affiliation, we refer to the community, ethnic, religious
and national ties that inform family philanthropy.
By sector, we refer to the causes or subjects that attract
family philanthropy in Asia.

Affiliation By impact, we refer to the extent to which family philan­

– Community thropists are being driven by the objective of achieving
– Religion defined social impacts or addressing problems of a given
– Country magnitude or nature.

By pragmatism, we refer to the extent to which family philan-

Sector Impact thropists are driven by practical, non-social goals, including
benefiting the individual or the business.
– Education – Social Impact
– Health – Social Return
– Major Problems
None of these four drivers operate exclusively: as in other
– Development
– Underserved Problems parts of the world, family philanthropy in Asia involves the
– Arts & Culture
interplay of a complex set of drivers. However, the drivers
– Rights
of giving in Asia form a distinct pattern.
Pragmatism
– Individual Benefit
– Family Benefit
– Business Benefit
– Political Factors

24
Affiliation Contributions per Grantee Type (in %, 2010)

The Principal Driver

9%  International
Affiliative relationships and loyalties (whether to social-linguis- 17%
organizations
tic community, ethnic group, religious creed, nation or even to  Local/National NGOs
a more generalized sense of being “Asian”) are the principal 4%
 Local/National
drivers of family giving in Asia. gov’t orgs
 Individuals operating
Community and Country 24% 46% internationally
In general, families across Asia focus their philanthropic activi-  Individuals operating
ties on the countries of which they are citizens or from which locally/nationally
their ancestors emigrated, and on the socio-linguistic commu-
nities to which they belong.
While most giving in Asian countries is directed towards
Our survey indicates that, for 2010, on average in the region domestic causes, philanthropies based in Singapore and Hong
approximately 70% of family philanthropic giving is directed Kong made the highest proportion of international donations,
toward national-level causes. Even among the 16% of charita- which may be partially attributable to the relative affluence of
ble giving directed internationally, only 4% reaches countries these regions. The large international population in the case
outside of Asia. of Hong Kong is also a factor.

Moreover, there is a strong bond of giving between philan- Non-Domestic Giving by Philanthropies
thropists and the ethnic communities to which they belong. (% of giving, 2010)
Around 14% of Asian philanthropists’ contributions are 35
directed to causes on this local and ethnic level. 33%

30
Geographic Focus of Giving
(% of giving, 2011 projected) 25
23%

4% 20

12% 14% 16%

15%
  Local community 15 14%
 National
10
  Asian region
  Non-Asia international 6%
5% 5%
70% 5
3%
0%
0
Singapore Malaysia Taiwan Indonesia Philippines
Hong 
Kong Japan India Thailand China

The exceptionally strong bias in Asia toward country and

­community is also manifest in the focus of organizations to
which our survey respondents make contributions. 87% of
contributions are directed to local or national individuals, non-
governmental organizations or governmental bodies.
Diaspora populations are also an important factor in affi­
liation-driven giving. Based on our research on patterns of
giving among members of the diaspora, it appears that these
communities reinforce the general pattern of giving in Asia.
Members of such diaspora communities tend to either make
contributions within the countries they reside or to the
c­ountries from which their families emigrated.

Accordingly, a very substantial portion of international contri-

butions by Singaporean families of Chinese origin flows into
China, and a very substantial portion of international contribu-
tions by Singaporean families of Indian origin flows into India.
For example, the Singapore-based Lien Foundation devotes a
large portion of giving to development causes in mainland
China. Sunshine Trust, funded by thirty Sindhi families largely
living outside India, goes a step further: the trust concentrates
its activities on the Sindhi community residing in India.

25
Religion Education
The role of religion as a driver for family giving in Asia has Education is the leading philanthropic cause in Asia. Across
unique characteristics. Our research confirms that, for many the region, our survey respondents will devote 35% of their
philanthropists in Asia, their motivation to give is strongly philanthropic giving this year to educational causes.
determined by their religious beliefs. But the religiously
inspired activity of giving does not translate seamlessly into Giving from Family Philanthropies to Education
giving to religious institutions. Although in most of Asia (% of giving, 2011 projected)
­(particularly in Indonesia, the Philippines, Singapore, Taiwan 53%
and Thailand), there is a substantial flow of small and unstruc- 50
50%
tured contributions to the coffers of religious institutions,
there is a surprisingly low level of strategic, structured giving
40 38%
to religious organizations. For a more detailed discussion on 35%
religion as a driver for family giving in Asia, see “Sector.” 32% 32%
30 28% 27%
Inapplicability of Affiliation-Based Giving
19% 19%
The overwhelming emphasis on affiliation as a driver for phil- 20

anthropic activity appears not to apply in two circumstances.

10

First, philanthropies in wealthier countries (most notably

Japan and, to a lesser extent, Singapore), are beginning to ori- 0

ent more of their activities towards less advantaged countries Japan Malaysia Hong Kong China Philippines
Singapore India Indonesia Taiwan Thailand
in Asia. For example, in Japan Hideo Okubo set up a founda-
tion to strengthen education in Cambodia, because he deter-
mined there was a tremendous need to improve the educa- In all countries surveyed, the education sector attracts the
tional sector in that country and felt that he could play an highest percentage of philanthropic contributions. Moreover,
important role in catalyzing the Japanese educational system education leads other popular causes by a wide margin.
to play a contributory role.
Giving to Top 4 Causes (% of giving, 2011 projected)
Second, contributions towards disaster relief are increasingly 35%
35
not linked to affiliation: Singaporean foundations gave to Pak-
istani flood relief, there was broad regional giving to tsunami 30

relief in Aceh, Thailand, and Japan. For a more detailed dis- 25

cussion on contributions towards disaster relief, see “Sector.”
20

Sector 15
12%
Family giving in Asia occurs around a range of sectors but is 10 9%
very significantly clustered around just a few sectors: educa-
5%
tion, poverty alleviation/development, health and disaster 5

relief. Together, the top four sectors account for 60% of all 0

giving in 2010 and are expected to account for approximately Education Poverty/Development Health Disaster relief
the same amount in 2011.
Drivers for Educational Giving
Top Sectors for Philanthropic Support in Asia There are a number of important reasons why education holds
(% of giving, 2010) such a significant attraction for Asian family philanthropists.
5% Charitable giving to education has deep cultural roots, often
10% tied to Confucian, Hindu, Buddhist, Islamic, Christian and other
 Selected   Disaster relief religious traditions. In the Confucian philosophy, education is
9% the pervasive life activity that enables one to become capable,
 Others   Development and poverty
 Health to know oneself, and, most fundamentally, to live morally. In
 Education Hinduism, “student life” is one of the four Ashrams that make
36% up the major, necessary stages of a person’s life. To contribute
40%
60% to someone’s education means to contribute to making that
person morally and spiritually whole.

The importance of sector generally as a driver for giving, and Another reason is that philanthropists in Asia believe that con-
the importance of education in particular, has deep cultural, tribution to education is the most foundational and sustainable
social, economic and political antecedents. strategy for uplifting individuals and communities from poverty

26

and enabling an overall improvement in the quality of life. For
example Dr. Lee Shau Kee, a prominent philanthropist in Hong
Kong, commented on the effectiveness of education: “Our
main focus is on education, because of the leverage effect it
can have. One teacher teaches 10 students, then 10 students
can teach 100 students, 100 can teach 1000.”
Also, education breaks the poverty cycle of a family. One
­person getting an education will benefit the whole family.
According to Michelle Sampoerna, Chairman of Indonesia’s
Sampoerna Foundation: “My father (Putera) and all my family
have always believed that education plays a critical role in the
development of leaders, and is an essential element in allowing
Indonesia to take its rightful place among the community of
developed nations.”
For most Asians, the rise to wealth from conditions of poverty
has a genealogy of less than one or two generations. Success-
ful entrepreneurs hold a deep and closely held recollection of
intense personal or family deprivation, and most prevalent is
the sense of having been deprived of a high quality education.
Many either persevered to their current status in spite of not
having access to a decent education, or only because they were
lucky enough to find a helping hand to complete their educa-
tion. Huang Rulun, currently the chairman of one of the largest
property development companies in China, was forced to drop
out of school at age 12 to support his family. This experience
has driven him to substantially focus his contributions to educa-
tional causes in China. Chinese philanthropist Yeung Kwok
Keung had similar difficulties in his childhood, but modest
financial assistance given to him resulted in a later desire to
contribute to education.
Additionally, contribution to educational institutions is widely
regarded in Asia as being one of the most transparent and
measurable forms of giving. According to M.B. Melwani, co-
founder of Sunshine Trust, which is sponsored by thirty wealthy
families from the highly successful Sindhi business community,
“We don’t achieve this level of transparency and measurable
impact in any of our other activities.” The Trust utilizes a com-
mittee of advisors in selected cities in India that selects and
monitors eligible schools and eligible students, pays fees for
­eligible students directly to the schools and receives progress
reports directly from the schools.
Almost uniformly across Asia educational institutions are
far better organized than other socially oriented institutions
in respect of the systematic solicitation and deployment of,
and accounting for, contributions from families. To this effect,
Chew Kheng Chuan, Chief University Advancement Officer
at Nanyang Technological University in Singapore, and a pio-
neer of institutional fundraising in Asia, regards universities as
leading the professionalization of philanthropic funds solicita-
tion across Asia.
Alumni and social networks as drivers for contribution to edu-
cational causes appear to be less strong in Asia than in Europe
Yasuhiro Fukushima
Building Sustainable Frameworks Enabling
Children’s Access to Education
Having retired in 2004 at the age of 56, Mr. Yasuhiro
­Fukushima set out on a journey through Cambodia, Viet-
nam, Laos and Myanmar to identify opportunities to con-
tribute to society as an individual. He decided to focus on
providing poor children with an environment to realize
their dreams. When he came across the problem of child
labor in the poorest families, Mr. Fukushima identified the
economic independence of families as the key to liberating
the children from labor, enabling them to attend school
and thus have hope in the future and realize their dreams.
Mr. Fukushima decided to partner with CEDAC (Cambodian
Centre for Study and Development in Agriculture), an NGO
which has a strong track record in agricultural development
in Cambodia, to teach farming as a means to achieve eco-
nomic independence. In starting the project, he set an
objective to build a framework which will enable the poor-
est families to continuously achieve economic indepen-
dence even after the two year project ends. With little use
of financial and material aid, he decided to focus on tech-
nology and skills transfer and work through village leaders.
In phase one (2005), he worked with 50 villages in which
CEDAC was already active; the villages became econo­
mically independent and continue their development activ-
ities to date. In the following year, he started phase two
and extended the scheme to 40 villages not covered by
CEDAC previously. When he succeeded, Mr. Fukushima felt
confident to deploy the scheme to the entire Cambodia
and launched in 2008 phase three, which in addition to
starting the farming project in 100 villages, also included
a schooling project. He produced and screened two films
that emphasized the importance of education. In the
­current phase 4 which kicked off this year, the farming
project now encompasses 700 villages. Simultaneously, he
is working on a new project in Kampong Speu Province to
develop a framework that enables the government, edu-
cational authorities of provinces and districts, and schools
to effectively encourage children to continuously attend
school. This would ensure the Ministry of Education, Youth
and Sports can carry on the work throughout Cambodia.
Mr. Fukushima’s goal is to ensure that all children in Cam-
bodia have access to education. His philanthropic ideas are
growing beyond Cambodia and his challenge continues.
and much less strong than in the United States. Nevertheless,
such networks play an important role in driving contributions
for educational causes across Asia and are particularly strong in
Hong Kong, India, Japan, Singapore, the Philippines and Tai-
wan. Established in 1935, the Doon School in India was cited by
The Economist in the 1990s as having the second most influen-
tial alumni network in the world after Harvard. The Doon
alumni network has been instrumental in raising funds for the
school, including from the Indian diaspora. As in the case of
a number of other such networks in Asia, the Doon network
has been particularly successful in obtaining rolling, multi-year
commitments (in contrast with large one-time grants).
Finally, a range of pragmatic reasons also favor contributions
to educational causes. These include: match-funding by gov-
27
ernment in specific cases, the perception that contribution
to education is politically neutral, the reputational benefits of
being associated with or even naming a building or program
at a prestigious educational institution, and the ability to tie in
contributions to research programs with business objectives.
between young Chinese mathematicians and acclaimed
mathematicians from around the world. They have also estab-
lished prestigious mathematics awards and organize sympo-
sia regularly. To support needy students at top ­universities in
China, scholarships are provided by Morningside as well.

Categories and Modes of Giving Technology-Based Learning in Philippine Secondary

Family giving for education across different Asian countries
spans the primary, secondary, tertiary and vocational catego-
ries. However, there appears to be differentiated degrees
of focus on these categories in each country, depending on
the level of economic development and effectiveness of public
education.
In India and mainland China, contribution towards ­primary
education and adult skills development continues to be a
major focus. In Japan, Hong Kong, Singapore and Taiwan,
there is a greater degree of emphasis on investment in univer-
sity education and special needs education, as well as on
investment in primary and secondary ­education in less-advan-
taged countries.
Increasing Rural Educational Access in Thailand.
Mechai Viravaidya, founder of the Population and Com­
munity Development Association, started the Mechai ­Pattana
School to give rural children a free, high-quality ­education.
Skills Development in China. Dr. Lee Shau Kee, the founder
of Hong Kong-based Henderson Land, has contributed inten-
sively to skills development training for villagers in China, with
a special focus on skills relating to the medical and infrastruc-
ture development sectors.
Supporting Science and Mathematics Learning in
China. Morningside, Ronnie Chan’s private family business,
established The Morningside Center within the Chinese
Academy of Sciences to promote intellectual exchange
School System. In the Philippines, the Ayala Foundation is
leading a non-profit consortium to bring Internet connectivity
to and enable digital learning across the country’s 6,785
­public high schools.
University Sponsorship in Singapore. Nanyang Tech­-
no­logical University (NTU) has been the beneficiary of long-
standing, regular and substantial philanthropic contributions
from philanthropists. The late Dr. Lien Ying Chow was a
founder of Nanyang University (precursor to the NTU) and
his foundation, Lien Foundation continues to be a regular
sponsor of several research initiatives at NTU, including
in the water sector.
Emigrant Education in Taiwan. The Cathay Charity Foun-
dation has a program to help women from other parts of Asia
who have married Taiwanese residents to learn Chinese and
become empowered and effective members of society.
Music Education in Taiwan. The Chang Yung-Fa Founda-
tion’s Evergreen Symphony Orchestra provides a platform
for young Taiwanese to cultivate musical talent and gives
them an opportunity to perform.
The modes of contribution to the education sector are
expanding, with traditional modes (such as financing the fees
of individual students, providing grants to universities, or
­academic building construction) being supplemented by more
strategic modes (such as creating excellence in a targeted
set of educational capacities).

Modes of Contribution to Education and Skills Development

Traditional
Student Centric Giving
This traditional model
is still highly prevalent
across Asia, and is used
by hundreds of thou-
sands of small benefac-
tors to advance educa-
tion within their
communities.
Sunshine Trust, spon-
sored by 30 Sindhi Indian
families, provides schol-
arships to needy stu-
dents from the Sindhi
community.
Institutional Grants
The more established
­colleges and universities
across Asia, ranging from
Keio in Japan to Aligarh
in India, rely to a substan-
tial extent on grants from
alumni and benefactors
for infrastructure support.
The Singaporean founder
of the Lien Foundation also
co-founded the precursor
of Nanyang Technological
University and the founda-
tion remains an important
benefactor.
Institutional Development
Asia has enjoyed a long
history of active development
of educational institutions
by philanthropists, and this
­tradition continues.
The Sampoerna Foundation in
Indonesia sponsors and man-
ages a range of educational
institutions and administration
consulting to deliver first-class
education to deserving youth.
Strategic
Capacity Development
Families are beginning to support
the strategic development of
­excellence in special education,
teaching skills and technology
driven learning.
The Cambodia International
­Education Support Foundation has
been established by Hideo Okubo
to develop teaching skills and peda-
gogy in Cambodia.

28
The Challenge and the Opportunity
The overwhelming focus in Asia of giving to education
­inevitably raises the question as to whether this is the most
impactful area of giving. On the one hand, education stan-
dards are rising rapidly across almost every country in Asia
and governmental, for-profit and non-profit educational
institutions are proliferating. On the other hand, educational
challenges across the continent are still vast, especially in
large population countries (such as China, India and Indone-
sia), and in terms of education for women in Islamic coun-
tries and special needs education in most countries other
than Japan.
For some types of giving to this sector, there may be a
diminishing positive impact. For example, in the nineteenth
century, social visionaries across Asia began to address the
pressing need to establish colleges and universities. Keio
University in Japan (established in 1858) and Aligarh Muslim
University in India (established in 1877) are two examples.
Similarly, Nanyang Technological University in Singapore
(predecessor established in 1955) was one of the first univer-
sities to serve the higher education needs of overseas Chi-
nese. Prominent business families have played a vital role in
launching and sustaining these universities.
Today, as college and university education has become
more widely available, the social impact of continued giving
into this sector is less clear. According to Lee Han Shih,
whose family-run Lee Foundation has funded and continues
to fund the university sector in Singapore: “My grandfather’s
generation addressed a burning problem by contributing
to the university sector in Singapore. Today, we are carrying
on my grandfather’s tradition but, in giving so substantially
to this sector, we are simply stuffing money down a pipe
that is already flush with cash.” Meanwhile, there is a grow-
ing need for new approaches to education like, for instance,
early childhood education, which has been proven to be
more efficient in generally improving education among the
disadvantaged than other types of education enhancement
approaches.1
Sunil Bharti Mittal, founder of the Bharti Foundation, recog-
nizes the need for restructuring as a key component in engi-
neering change in the education sector. He elaborates:
“When the foundation started, we were more focused on the
giving aspect of charity as opposed to structured philan-
thropy…eventually we began to start on initiatives that were
more sustainable in nature, such as the Bharti Libraries. The
idea was learn to read and read to learn. It was a small invest-
ment but to my mind, the impact was very large.”
1 UBS Optimus Report
According to Kanti Prasad Bajpai, an expert in international
affairs, and previous Headmaster of the prestigious Doon
School in India: “there continues to be a massive need for
investment in education across Asia. But families that want to
contribute to the sector need to think more strategically. They
need to consider where needs are not being met by the gov-
ernment, by the for-profit sector and by the non-profit sector,
and then need to fund into these needs. There is still a mas-
sive need for financial contribution to skills development for
rural uplift, teacher training, special needs education, technol-
ogy-driven education and entrepreneurship and innovation
for improving lives at the bottom of the wealth pyramid.”
Religion
The role of religion as a sector for family giving in Asia has
unique characteristics. Our research confirms that, for many
philanthropists in Asia, their motivation to give is strongly
determined by their religious beliefs. A number of our inter-
viewees confirmed that, even though they were not religious
in a conventional sense, their motivation to give was strongly
inspired by their religious beliefs and upbringing. Dato’ Ruby
Khong, a prominent Malaysian philanthropist, refers to Bud-
dhism as an inspiration to her giving: “What drives me is my
Lama’s teaching about giving. He always says: ‘Be different,
be altruistic. Be strange, work for others in response to their
harm. Raise eyebrows, be generous without agenda.’ Having
spent the first half of my life seeking fun for myself, I have
committed the rest of my life to practicing this teaching.”
Giving and Religion
From Inspiration to Religious Causes
Thailand The Chearavanont family is one of the richest
families in Thailand, and their philanthropic activity is sub-
stantially informed by their Buddhist faith. The family has
built or restored more than a dozen Buddhist temples in
Thailand. The family also supports education and child
­welfare across the country.
Indonesia Zakat (contribution of 2.5% of one’s wealth
to charity) is one of the core principles of the Islamic faith.
In Indonesia, institutions such as LAZ Bank BNI and Dom-
pet Dua’fa collect zakat from wealthy Indonesians. The
funds are utilized for the benefit of less advantaged Indo-
nesians for causes such as the advancement of education
(including religious education), health and welfare.
China Philanthropist Mr. Huang Rulun feels compelled to
engage in philanthropy through a deep belief in Buddhism.
Principles such as “if you do good deeds, your descendants
will be blessed” inspired him to found the Fujian Jiangxia
Charity Foundation, which is committed to the advance-
ment of impoverished Chinese farmers.
29
 Dato’ Ruby Khong

Religion as an Inspiration
The director of an international petroleum company in
­Malaysia, Dato’ Ruby Khong descends from a prominent
family in Penang. Although the tradition of giving has existed
in her family since the generosity of her great-grandparents,
she was personally inspired to become involved in charity
work through her Buddhist convictions.
As a child of privilege, Dato’ Ruby was bothered by the adver-
sity in the lives of the poor people she observed outside tem-
ple doors in her hometown, but was impressed when she saw
a Hare Krishna giving out food to them. This experience led to
her funding His Eminence Tsem Tulku Rinpoche, her spiritual
guide, during their first meeting in India to make food dona-
tions. His Eminence, in turn convinced her to start giving
directly to the impoverished.
Because of this advice, she helped start the Kechara Soup
Kitchen (KSK) as a way to have a direct channel to helping the
needy. While the effort has been religiously motivated, KSK
works in such a way that it does not discriminate with regards
to who benefits. Rinpoche had only one request: “if you are
going to feed the hungry, feed without discrimination of race,
age nor gender. No talk about religion, no talk about politics.”
After being featured in the media, donations started pouring
in from Malaysians who wanted to help. Gradually with the
expansion of the kitchen’s operations, the organization has
been able to find employment for 60 people, and help thou-
sands of others receive food from the kitchen.
Dato’ Ruby believes that giving is not just about putting food
in people’s hands. “It is to give them hope, to let them know
that someone cares. It goes beyond the physical and tangible
context. For me, I think we shouldn’t focus on food but rather
what the packet of food represents…for someone who has
been on the streets for that long, they have very low self-
esteem. Hundreds of people walk past them every day and
nobody even notices that they exist. After a while it really eats
into them and it kills the human spirit. So we ask that our vol-
unteers stop to have a chat with them, or give them food with
two hands and a smile. For me, my philanthropy work is not
just about giving money or food. It is about giving hope and
care, and a second chance at finding happiness in life.”

Nevertheless, our survey also indicates that the level of con­ Percentage of Giving from Family Philanthropies
tributions by family philanthropies directly to religious institu- to Religious Causes
tions and causes is remarkably low. This situation is in dra- 7
7%
matic contrast to individual and family philanthropy in the
United States, of which 33% (over US$ 100 billion) flowed in 6% 2010
6
2009 to religious institutions and causes.1 Overall in Asia, only 2011 (projected)
5%
2% of contributions made in 2010 and expected to be made 5

in 2011 are directed to religious institutions and causes. More-

4%
over, our findings do not vary dramatically across our target 4

countries. 3%
3
3% 3%

Our findings do not necessarily indicate that religious institu- 2% 2%

2
tions and causes are deprived of funds. In parts of Asia,
especially Indonesia, the Philippines, Singapore and Taiwan, 1
1% 1% 1%
religious institutions are large and are generously funded by
individual and family donors.2 Moreover, in some countries 0
there appears to be a widespread disinclination to report on Indonesia Hong Kong Thailand China Japan
giving for religious causes, due in part to concerns regarding Taiwan Malaysia Singapore India Philippines

ethnic and sectarian discrimination.

1 Giving USA 2010 – Executive Summary. p.8

2 A sia Pacific Philanthropy Consortium 2001: “Strengthening Philanthropy in the
Asian Pacific: An Agenda for Action”, Conference Report. p.7

30
Donations to religious institutions in Asia seem to flow from
both small and large donors who contribute on an episodic,
unstructured basis. Families that have taken up ­philanthropy
on a systematic, structured basis, while often inspired to do
so for religious reasons, tend to have a distinctly non-reli-
gious orientation in their focus of giving. Also, structured
contributions that are made to religious organizations are
often earmarked for other causes like poverty alleviation or
health services, as channeled by the religious organization.
Poverty Alleviation and Development
The direct contributions by our survey respondents to pov-
erty alleviation and development have been growing. Across
the region, our survey respondents will devote 12% of their
philanthropic giving this year directly to such causes.
Giving from Family Philanthropies to Poverty Alleviation
and Development (% of giving, 2011 projected)
20
19% 19% 19%
18%
16%
15
12%
10
10%
6%
5
0 more clearly.
India Hong Kong Malaysia Taiwan Philippines
Indonesia Singapore Thailand China
In actuality, the relative contributions by families in Asia to
poverty alleviation and development are greater than as indi-
cated in the foregoing chart, as contributions to education,
health and other causes also impact poverty alleviation and
development.
Nevertheless, several factors constrain the capacity of fami-
lies in Asia to make systematic contributions to poverty alle­
viation and development. In Japan, Singapore and Taiwan, the
scope for contribution to this sector is limited on a domestic
level. This is due to the relative prosperity of domestic popula-
tions. Not surprisingly, as indicated in the graph “Non-Domes-
tic Giving by Philanthropies” (see page 25), philanthropists in
these three regions have the highest level of giving to non-
domestic beneficiaries among those participating in the study.
Elsewhere, private contributions by families play a highly
­subordinated role to governmental programs, official overseas
development assistance and contributions by foundations
based in OECD countries.
Family philanthropies find it difficult to work directly with
­government agencies, which are generally not geared to
working with funding sources other than governmental, or
bilateral and multilateral organizations. Before Mr. Wender
Yang set up the Hima Foundation in Taiwan, he tried to
work with the government, however the limited efficiency
and effectiveness of the bureaucracy involved made it a very
­difficult process. As a result, he decided to set up his own
foundation.
However, private-public partnerships are beginning to form,
which offer some early channels for private sector contribu-
tions to the development agenda. Indeed, recognizing the
power of governmental involvement, some philanthropies
(such as the Ayala Foundation in the Philippines) strategically
undertake major initiatives using social consortia which
involve government agencies.
Hong Kong and Chinese philanthropies commonly partner
with Chinese governmental organizations, one reason being
that it is difficult to have officially-recognized operations in
China without establishing such partnerships. Official recogni-
tion allows for more cooperation and trust on the local level,
6% as well as the possibility of being granted tax exemption sta-
tus. A comprehensive Charity Law is currently under review,
which would define the process of official recognition and tax
1% exemption for non-governmental organizations (NGOs) much
Japan
Development-focused NGOs also only provide a limited
­channel for private sector philanthropy. Of the total of over
US$ 100 billion in overseas development assistance, about
one third makes its way to Asia: most of this is channeled
through governments, but an increasing segment is chan-
neled through domestic and international, development-
focused NGOs. Such NGOs are also recipients of contributions
from overseas foundations such as the Ford Foundation and
the Bill & Melinda Gates Foundation.
In many instances, these NGOs have become channels for the
often-changing development priorities of their three major
donor groups. From the perspective of many of these NGOs,
systematic cultivation of funding support from domestic fam-
ily foundations is difficult and uncertain. From the perspective
of domestic family foundations, these NGOs either emphasize
domestic governmental agendas or internationally controlled
priorities that make them inadequately responsive.
However, there is a vast opportunity for family philanthro-
pies to participate more meaningfully in poverty alleviation and
development and it appears this is beginning to happen.
31
While poverty alleviation and development requires large Philanthropists support a range of health care issues, from
amounts of sustained funding that is beyond the scope of sin- basic health care to specialized needs. They contribute to skills
gle family foundations and usually even groups of such founda- development for medical personnel, facilities for health ser-
tions, there is considerable room for families to play a catalytic vices, and funding for the provision of specialized medical
role in addressing emerging problems and funding innovative care for those that need it.
new solutions and innovative new models of giving. As individ-
uals and families are able to move much more quickly than In the realm of skills development, there are a number of
­governments or often even multi-laterally driven NGOs, they examples. Dr. Lee Shau Kee’s Warmth Project has been
can act as the advance guard of poverty alleviation and devel- responsible for training and mobilizing 11,000 health care
opment by providing seed funding and supporting pilots and workers in rural areas of China. These workers have played an
funding self-sustaining models. Jack Ma, CEO and creator of instrumental role in raising the overall standard of basic health
the first Chinese e-commerce website, uses a microfinance care and quality of life in their communities in a sustainable
approach to support poverty alleviation in a sustainable man- manner. The Population and Community Development Asso-
ner. He believes that innovative approaches to solving these ciation, founded by Mechai Viravaidya in 1974, has mobilized
kinds of social problems are the appropriate strategy for today’s social workers to promote awareness regarding AIDS, family
world: “The 21st century is the time for a new commercial planning and other health-related topics in communities
­civilization, the content of which is openness, sharing, respon­ across Thailand.
sibility and globalization.” 1
As in other parts of the world, the decision by families in Asia
Health to support health-related causes is in some cases linked to per-
Health-related causes generally receive strong support from sonal challenges and experiences. The world-famous Jaipur
family philanthropies across Asia. Overall, 9% of contributions Foot is one such example. In 1969, Mr. D.R. Mehta met with
to be made in 2011 will be directed to health-related institu- a serious car accident in which his leg was crushed. Although
tions and causes. surgeons succeeded in saving his life, the accident opened
Mr. Mehta’s eyes to the plight of over one million amputees in
India. Six years later, he started a philanthropy to address this
1 Renminwang, “Alibaba: E-commerce’s Magnifying Effect on Social Business” challenge: Jaipur Foot. Today, it draws individual, family and
http://it.people.com.cn/GB/42891/42898/10745469.html
institutional funds from across the world, while it continues to
be very actively managed by Mr. Mehta. Jaipur Foot is the
Giving by Family Philanthropies to world’s largest provider of prosthetics, polio calipers, crutches,
Health-related Causes (% of giving, 2011 projected) amputee cycles and prosthetic care. It has developed its own
low-cost technology and now partners with NASA and Stan-
17% ford University to further drive innovation.
15%
15
Government agencies are commonly beneficiaries of health-
13%
related donations, and involved in the operational aspects of
11% 11% related projects. The Chinese Red Cross Society is involved in a
10
10% large amount of such projects on the local and national levels:
Mr. Niu Gensheng, founder of Mengniu Dairy and the Lao Niu
Foundation donated to the Hohhot Red Cross to support the
treatment of leukemia. (Hohhot is the capital of the Chinese
5
4% province of Inner Mongolia.)
3%
2%
1% Health-related donation is often an aspect of larger develop-
0 ment initiatives. For example, Dr. Lee Shau Kee’s Warmth
China Philippines Taiwan Singapore Thailand ­Project involved projects to train health care professionals and
India Hong Kong Indonesia Malaysia Japan provide safe drinking water, but also encouraged community
economic development through career training and job
­placement.

Given the range of challenges facing the healthcare sector

across Asia and the pace of innovation in the sector around the
world, there is a huge potential for family philanthropists to
play catalytic roles in disseminating best practices and piloting
scalable new models for the sector.

32
 Eddy Sariaatmadja
Supporting a Healthy Society
Eddy Sariaatmadja, an Indonesian philanthropist, has built
his success through media and software companies, as well
as through palm oil and rubber plantations, and chooses
to apply his business success to solving the social problems
facing his country. His daughter is a direct inspiration for
the area of charitable giving to which he contributes heavily:
health care.
She was born with a very low birth weight, and the experi-
ence he had with the public and private health care systems
led to his decision to make a difference in the sector, on a
national level.
While Mr. Sariaatmadja does not give through a formalized
foundation, he generally channels his giving in the health
sector through a standing partnership with the University of
Indonesia and other institutions.
Part of the partnership is centered on eye health, specifically,
treatment and research regarding cataracts.
With Mr. Sariaatmadja’s support, the University of Indonesia
and other institutions have performed large numbers of
­cataract surgeries on those who could not otherwise afford
it, and brought members of its hospital staff to localities
Disaster Relief
Overall among Asian philanthropic families, funding distributed
for disaster relief made up 5% of contributions in 2010. It was
an especially important cause for Thailand, where at least
21% of contributions made by family philanthropies went to
disaster relief. Response to floods across the country in 2010
may be a large factor in this statistic.
Disasters are sudden, unexpected and require large amounts
of resources in a short amount of time. Individuals and fami-
lies across Asia have contributed strongly to the spate of nat-
ural disasters that have recently affected the continent.
around Indonesia to train eye ­specialists in the latest
cataract treatment techniques.
Research activities have included a study on cataracts in
urban centers across Indonesia, as well as supporting PhD
candidates for pediatric and heart research.
In working with eye specialists from Cicendo Eye Hospital
Bandung, Mr. Sariaatmadja has donated medical equipment
to the hospital and has also been sending its teams to differ-
ent needy communities across Indonesia to perform free
­cataract surgeries, treating thousands of people who could
not afford to have the treatments.
Apart from eye health, Mr. Sariaatmadja has lent support
to other important initiatives in health-related areas. He
has been supporting free medical camps in slum areas in
Jakarta and surrounding areas. He has facilitated the building
of ­clinics and toilets in areas where prostitution is localized,
provided free medical examinations and treatment in impov-
erished regions, and raised awareness for blood donations.
He is also planning to establish a Center for Excellence in
Health, which would be initially funded by Mr. Sariaatmadja
and his companies through corporate social responsibility
channels.
Giving by Family Philanthropies to Disaster Relief
(% of giving, 2010)
21%
20
15
11%
10
8%
7%
Thailand Taiwan China Indonesia
33
 Emergent Sectors
Disaster Relief, Philanthropy Stepping in There are a handful of other sectors that are not uniformly
Indonesian Tsunami (2004) More than US$ 7 billion represented across Asia, but are nevertheless important
was donated from countries all over the world, including emergent causes in certain countries.
US$ 200 million in private US donations. Lily Kasoem’s
Titian Foundation was founded to support the rebuilding Giving to Emerging Causes Across Asia
of villages destroyed by the tsunami, and has since con- (% of giving, 2010)
tributed to other disaster relief projects in other parts of 1%
Indonesia. 2%
4%
4%
Sichuan Earthquake (2008) After the quake, philanthro- 4%  Other
pists from Hong Kong (Dr. Lee Shau Kee, Mr. Ronnie Chan),
 Environment
mainland China (Mr. Niu Gensheng, Mr. Huang Rulun, Mr.
  Science & technology
Yeung Kwok Keung), and Taiwan (Dr. Chang Yung-Fa and
the Cathay Life Insurance) made significant donations to   Women’s issues
­disaster relief. The Chang Yung-Fa Foundation rebuilt five 85%   Civil rights
schools and eight clinics. Dr. Lee sent doctors from his private  Arts/culture
hospital to help victims in Sichuan, and many of his employ-
ees and senior managers contributed to relief projects.
The Lao Niu Foundation built a home in Sichuan for or-
phaned populations, in particular children, the elderly and Emerging Causes: Top Countries for Giving
the disabled. The home provides them with accommoda- (% of giving, 2010)
tion, education, and medical rehabilitation.
Environment: Philippines 12%, India 9%
Japan Earthquake, Tsunami, and Nuclear Disasters Science and technology: Japan 23%
(2011) As of April 2011, US$ 1.4 billion has been donated Women’s issues: Japan 4%, Philippines 4%,
to disaster relief. US$ 122.5 million came from Softbank India 4%
Group President Masayoshi Son as well as the rest of his Civil rights: Hong Kong 4%, Indonesia 3%
earnings until retirement. US$ 4.8 million and US$ 3.9 mil-
lion were donated through the mainland Chinese and Arts/culture: China 10%, Malaysia 5%
Hong Kong Red Cross Societies in the month after the
disaster, respectively. Dr. Chang Yung-Fa personally On the whole, contributions to these sectors are small in
donated one billion Japanese Yen. ­comparison with contributions to other sectors, but such con-
tributions signal the gradual emergence of causes that have
already acquired prominence in other parts of the world.
On the whole, disaster funding is gathered on a relatively
short-term basis but helps lead to the development of the There is a distinct generational dimension to the embrace
operational sector. The Indonesia tsunami response led of these emergent causes. Members of the older generation
to the creation of a stronger NGO sector; this year 62% of tend to feel that these emergent causes take away from
family philanthropic donations in Indonesia went to local the foundational work still to be done in the areas of educa-
and national NGOs, the highest percentage in the Asian tion, poverty reduction and health care access. Members
region. 60% of these NGOs were created in the last three of the younger generation feel that there is immense value
years, marking a growing trend for the sector. The Sichuan in addressing needs in sectors such as the arts and culture,
earthquake has had similar results in China; 29% of philan- ­animal welfare, environmental protection and civil rights.
thropic donations went to NGOs last year when previously
the operational sector had been dominated by government
organizations.

Still, in China most officially recognized NGOs are closely

tied to or indirectly run by a government agency. The Red
Cross Society of China, which shares leadership with the
­Chinese government, received more than US$ 879 million in
donations for the Sichuan earthquake in 2008 –2009, a large
portion of total donations. One exception is Yeung Kwok
Keung’s response to the Sichuan earthquake, which was
comprehensive in its approach, longer term and largely
­self-operated.

34
 Emergent Themes
Arts and Culture
The Khattar family is an integral part
of the Singaporean philanthropic and
social scene, and is active in philan-
thropy both through volunteerism and
financial support. The patriarch, Sat
Pal Khattar, has generally focused on
the advancement of education and
other public causes including the
development of cooperatives. His
daughter, Shareen, also active in edu-
cation, also focuses very strongly on
supporting the arts and culture.
“I respect what Shareen does,” notes
Sat Pal Khattar, “while I continue to
believe my efforts are best devoted to
advancing education and economic
development. At Shareen’s prompt-
ing, I will contribute a modest amount
to advancement of the arts and cul-
ture, but she is directly responsible for
raising much larger amounts for such
causes.” Ronnie Chan in Hong Kong
also supports arts and culture through
the philanthropic unit of his family
business. His restoration of a Qing
dynasty-era compound in the For­
bidden City preserved an important
cultural and historical artifact for
­generations to come.
Support of Civil Rights and
­Advocacy
Outside of India, families are quite
reluctant to support causes relating to
civil rights and advocacy. According
to one Hong Kong based professional:
“there is a great reluctance by philan-
thropists to fund causes relating to
civil and political rights and advocacy
because these matters could get one
afoul of government.” But the
younger generation is distinctly differ-
ent in this regard and is much more
willing to take on such causes.
In Thailand, the support by individuals
and families for civil rights advocacy
has been steadily growing and advo-
cacy groups are beginning to become
more vocal and collaborative. In
March 2011, a coalition of 50 civil
rights groups submitted a report of
documented abuses to the Thai
Human Rights Commission.
Protecting the Environment
Our interviews indicate that members
of the younger generation appear to
be far more passionately committed
to environmental causes than mem-
bers of the older generation. It is likely
that the voice of the new generation
on environmental matters will break
through in the coming years. “After
all,” as Lisa Genasci of the Hong
Kong-based ADM Capital Foundation
noted, “it’s not that members of the
older generation do not support envi-
ronmental causes, it’s just that they
often view education and poverty alle-
viation as being more important.” In
Malaysia, the youngest son of the Sul-
tan of Pahang is deeply committed to
environmental causes. Inspired by this
passion, his parents have now estab-
lished a major nature reserve in the
State of Pahang.

The importance of emergent causes is underscored by More classically liberal political systems in India and Hong
­globalization: younger generation members coming back Kong have led to some support of civil rights: vigorously in
from studies in Western countries, intensive media reporting India as an aggressive rights movement seeks to use the legal
on environmental issues and the uptake of such causes by system to break centuries old barriers that have held down
­philanthropies based in the West are some of the factors that large segments of the population in trappings of caste and
are likely to accelerate the espousal of such causes in Asia. class, and somewhat more cautiously in Hong Kong as the
­citizens of the special administrative region seek to define the
In addition, country-level drivers play a very important role balance between the rights of the state and the individual
in the degree of adoption of emergent causes. Japanese within their own political context.
­philanthropists have made remarkably large contributions to
­science and technology. This may reflect the prominent role
of technology in their industries, as well as the importance
they place on innovation as a means to revive a suffering
economy. This is a more holistic education / employment
strategy than, for example, that of Singapore (with 2% of
contributions to science and technology giving.)

35
 Refugee Philanthropists
Enabling the Contributions of Women
The experience of being a refugee during the period of
political upheaval in South Asia in the late 1940’s has had
a profound impact on communities that emigrated from
the area that is now Pakistan and India and later to other
parts of the globe. That experience has encouraged some
of the emigrant communities to pursue philanthropy for
the benefit of those members of society who are margin-
alized or victims of circumstance.
One group that participated in this survey emphasizes
women’s empowerment, particularly in areas which
observe a strict version of Islam where few opportunities
are available for women outside the home. This group
believes that as a significant proportion of the popula-
tion, women can make a significant contribution to the
well being of their families and to the larger community.
This group supports women’s education and health-care
as a way of empowering them and also as a method of
fostering community development.
One problem that results from this approach, however is
that the women who receive an education in this environ-
ment tend to leave their communities for the cities due
to a lack of opportunity for satisfactory work in the coun-
tryside.  One way of addressing this issue, the group
believes, is by providing micro finance to projects which
fund entrepreneurial ideas and encourage newly edu-
cated women to stay in their communities. The resulting
income is then channeled back into the communities,
promoting social harmony, and improving the overall live-
lihoods of all.
36
The HIMA Foundation
Green Philanthropy
Mr. Wender Yang is one of a small number of Asian
­philanthropists who focus on environmental issues, which
he positions in the context of poverty alleviation and
community development. Mr. Yang focuses mainly on
combating desertification, and its effects on communities
in the outer regions of China. He is trying to recover the
lost kingdom of Loulan in far western China, once an
important node on the Silk Road, and to find traces of
this mysterious ancient culture between East and West.
The kingdom was slowly engulfed by the Taklimakan
­desert 2000 years ago. Today the shrinking numbers of
inhabitants in the region are finding it harder to make
a living, as the encroaching sands have claimed land that
was once used for agriculture.
Through measures like large-scale tree planting, the
HIMA foundation is both combating desertification and
providing sustainable livelihoods to the local population.
The foundation re-introduced indigenous plants like
­dogbane and licorice, which are better suited to the local
conditions than non-native transplanted crops that
­damage the already fragile soil. Mass planting of these
trees halts the advance of the desert by rooting the
­topsoil in place.
Meanwhile, Mr. Yang is trying to publicize the message
of environmental protection to as wide an audience as
possible. This is achieved through initiatives like the 2011
Million Trees Campaign, where the HIMA Foundation
sponsored the planting of one million trees in 100 cities
around the world, and through newer avenues like an
environmentally-themed video game which the founda-
tion is co-developing.
Mr. Yang’s wife is also involved, and has developed com-
puter skills to assist in the marketing side of the organiza-
tion. His daughters plan to be involved in the foundation
after finishing their education. The HIMA foundation’s
philanthropy is what inspired them to pursue studies in
ecology.
Soichiro Fukutake
A Testimonial to Promoting Culture and the Arts
“The wealth generated from business activities should
­contribute to society” believes Soichiro Fukutake. An idea
that is nothing special or nothing new but that maybe,
regretfully, too few Japanese corporations understand.
Based on this belief and on the conviction that businesses
should serve to improve communities, including through
­culture, Mr. Fukutake launched the Naoshima Project.
An ­initiative that also traces its roots to his father’s vision
for society and dreams.
Soichiro Fukutake reflects: “My dream is to create a ­para-
dise filled with the laughter of the elderly. As a consequence
of Japan’s industrialization, the aging population in Japan
is concentrated in under populated areas, including in
Naoshima and its neighboring islands on which my philan-
thropy is focused. These islands also faced challenges of
their own: The sulfur dioxide gas damaged crops and trees
on Naoshima, industrial waste was found on, Teshima, and
Oshima being the location for a facility for Hansen’s disease
patients.
I attempted to transform these small islands into a centre
of contemporary art. The means to achieve the dream had to
be contemporary art, because each work of contemporary
art has an underlying message connected to the issues, chal-
lenges, and the contradictions of modern society.
You can’t display contemporary works of art in big city jun-
gles like Tokyo or New York, where the city itself is packed
with its own issues and contradictions. Naoshima was there-
fore an ideal location to build my dream. The island is sur-
rounded by the Seto Inland Sea, the first national park in
Japan, and also a place where my father wanted to open a
camping site.
While I was working on the Naoshima project, I came to ­realize
that contemporary art has the power to revitalize under popu-
lated areas. Revitalization is made possible by attracting young
tourist to the island through the art and involving the elderly
residents in explaining the art. Through this process, I witnes­
sed the elderly become cheerful and I could feel that Naoshima
was delivering happiness to its people and visitors.
I would like to share a message with the rest of the Asia:
Today, the region is undergoing radical economic develop-
ment. Do not follow the same mistakes Japan made in the
past. In the pursuit of becoming an economic power Japan
destroyed part of its culture and created a toxic legacy as I
­discovered in Naoshima. Putting too much focus on the econ-
omy jeopardizes culture. China in particular is in my thoughts.
China has one of the most marvelous cultures in the world.
I do hope that China builds a system where business serves as
an infrastructure to maintain its beautiful culture.”
37
Impact Our discussion with family philanthropies indicates there
In examining social impact as a driver for family giving across is a duality in terms of how the question of social impact is
Asia, one obtains a decidedly mixed picture. viewed.

On the one hand, our survey respondents appear to both (a) It appears that the older generation of philanthropists view
utilize to a reasonable extent social impact measures of per- social impact as an important measure of good governance
formance and (b) do not rank achievement of social impact for their philanthropic activities, but do not necessarily view it
among the top three challenges that they will need to address as the critical driver for their activities. For the older genera-
in the future. This would imply that social impact measures tion, contributing to the community and funding worthwhile
are being used, and that family philanthropies are satisfied causes such as education are worthwhile ends in themselves,
with the impact they are making. and they feel that impact is made in a general sense when
peoples’ lives are improved. In their perspective, the precise
Performance Measures: Percentage of Respondents social impact of such activities and the social return on their
Checking “Important” (2010) investments are neither susceptible to appropriate measure-
ment nor the most important determinant of their philan-
Measures to determine thropic activities. Chew Kwee San of the Tan Chin Tuan Foun-
26%
profitability / sustainability dation in Singapore describes his grandfather’s concept of
philanthropy as in the traditional English way: “Giving to
Measures to determine those people who needed the basic articles of survival…he
40%
operational efficiency wanted to focus on essentials that would help people improve
their lives.”
Measures to determine
58%
social impact A younger generation of philanthropists is emerging that
0 10 20 30 40 50 60 sees matters quite differently. Laurence Lien, a third genera-
tion board member of his Singapore-based family philan-
thropy, decided that simply giving in the traditional way was
Family Philanthropy Future Challenges – not good enough. He has helped lead the transformation of
Impact-Related in Red (% of No. of respondents, 2010) his family philanthropy as an impact-oriented organization
focused on key issues such as water and sanitation, eldercare
Other 69%
and pre-school education. Moreover, he determined he could
never have sufficient social impact simply as the head of a
­private foundation. He now also heads Singapore’s National
Controlling costs and improv- 9%
ing operational efficiency
Volunteer & Philanthropy Center, the country’s national orga-
nization for driving volunteerism and philanthropy. Azim
Widening the social Premji, the founder of a large philanthropic organization in
10%
impact of our contributions India, agrees that the new generation of philanthropists are
more willing to become involved on a personal level: “They
Strengthening governance are spending not just money but also their time…this new
11%
and management
generation is good for the future of philanthropy.”
0 10 20 30 40 50 60 70

For this younger generation, philanthropy is most critically

On the other hand, there is clearly a sense that there is about social impact: leveraging one’s capital, time and social
­considerable room for improvement in terms of achieving standing to address substantial social challenges in a sustain-
social impact: able and scalable manner. Rohini Nilekani, a first-generation
Indian philanthropist, describes her generation as “having
Satisfaction with Impact on Causes Being Supported no compunctions or constraints about passing the wealth on,
(% of respondents, 2010) as they themselves did not inherit…they are very innovative
in how they give, and seem to have less ideological bag-
Disappointed and
6% gage…they also seem to want to see results faster.” This atti-
looking to improve
tude lets these younger generations explore new giving pos-
 8% sibilities, whether focusing on a less-covered aspect of an
Too early to tell
established area like education, or being more involved in
Extremely satisfied    20%
emerging areas like the environment.

Somewhat satisfied but        55%

room for improvement
0 10 20 30 40 50 60

38
Cutting across, to some degree, this generational divide
is another very exciting dynamic. Both traditional business
groups (such as the Ayalas in the Philippines) and relatively
newer business groups (such as the Reliance Group in India)
have experienced stunning success in recent years in envision-
ing and realizing large-scale business ventures in fields rang-
ing from telecommunications to infrastructure to finance to
real estate. Whether of old money or new money, these are
the leaders of the new Asia: confident, aggressive and capa-
ble of doing things in scale.
Emergent Impact Strategies
Some philanthropists are beginning to ask questions about
the root causes of social problems and to imagine solutions
that address major national problems. There is broad interest
in generating social impact in a fundamental, transformative
way, through innovative solutions:
Multiplying Impact by Investing in Scale: By focusing on
one issue and devoting a large portion of available resources
and capital, whether in one country or across Asia, a larger
impact can be made. Niu Gensheng’s Lao Niu foundation
works closely with the Red Cross Society and the China Foun-
dation for Poverty Alleviation, two of the largest officially-rec-
ognized NGOs in China, to effect poverty alleviation in China.
The Lien Foundation in Singapore is investing in water and
sanitation, in projects ranging from technical research, to
advocacy, to public-private projects, at locations in China,
Cambodia and Vietnam.
Multiplying Impact by Investing in Profitable ­Companies:
Through the avenues of impact investment and social enter-
prise development, philanthropies can invest in businesses
that will either yield dividends for the investor and have a
social goal, or support a company that can eventually sustain
itself with its own profits. A private foundation in Hong Kong
has earmarked a portion of its funds to engage in and pro-
mote impact investing. Social Ventures Hong Kong builds
capacity and provides funding over an extended period, as a
strategy to ensure that grantees are able to become self-suffi-
cient over time. The Consuelo “Chito” ­Madrigal Foundation
also supports such organizations in the Philippines, with the
goal that they will become self-sustaining; they verify this by
monitoring of the organization ­personally and through out-
side auditors.
The question remains open whether and how the business
pioneers of a dynamic, rising Asia will have a meaningful
impact on the many social and environmental problems by
which the continent continues to be beset.
The Ayala Foundation
A Framework for Strategic Giving
The Ayala Foundation is one of the largest private foun-
dations in the Philippines. Founded in 1961, the Founda-
tion is funded by the Ayala Corporation and other com-
panies controlled by the Ayala family, one of the leading
family businesses in the country. With a principal focus on
five sectors (Education, Technology and Social Entrepre-
neurship, Environment and Sustainability, Art, History and
Culture and Community Development), the Foundation
designs and operationally manages major, socially
impactful initiatives in the country.
The Foundation has developed a robust, three-part
framework for selecting, designing and implementing
new social impact initiatives.
Address National Challenges. Select and design initia-
tives that address major, nationwide challenges that are
not being adequately addressed by other actors.
Build a Social Community. For optimal, large-scale
impact, build a ‘social community’ of participants for
each initiative, including the government, corporate sec-
tor, experts and local activists.
Make Leveraged Contributions. Solicit funds at both
an institutional (corporate, foundations, government) and
retail (individual) level in order to leverage the Founda-
tions’ own contributions by a factor of at least 2 : 1 (Other
Contributors: Foundation ratio).
Using this framework, the Foundation has spearheaded
Gearing Up Internet Literacy and Access for Students
(GILAS), a multi-sector initiative to bring Internet connec-
tivity to and enable digital learning across the country’s
6,785 public high schools. The initiative includes: Internet
Labs and Connectivity (over 3,400 schools), Teacher
Training (over 12,000 teachers) and Digital Content (over
a dozen subjects). Participants include national and pro-
vincial governments, multinationals and private sector
companies. Funding has been provided by the Founda-
tion, government bodies, multilateral agencies, corpora-
tions and domestic and overseas Filipinos.
Pragmatism
As in other parts of the world, pragmatic and non-philan-
thropic factors also drive family giving in Asia. These drivers
are difficult to quantify and are less susceptible to being ade-
quately captured through surveys and interviews. However,
based on our research, it appears that some of these drivers
tend to have a more distinctly Asian characteristic, while
­others do not.
39

Asian-Neutral
Personal and Family
Recognition
Giving is often driven at least
in part by the desire for per-
sonal and family recognition.
In a number of Asian cul-
tures, some variant of the
view prevails that giving
becomes tainted if it is driven
by personal motives or is
made public. Accordingly, a
substantial amount of giving
in Asia is private. However, it
is not clear that this duality
differentiates Asia.
According to Chew Kheng
Chuan, Chief University
Advancement Officer at Nan-
yang Technological University
(NTU) in Singapore, the con-
sideration of personal and
family recognition is an
important, but by no means
universal, pragmatic driver
for giving to universities.
Pragmatic drivers for engaging in family philanthropy
Business Interests
Giving is sometimes driven
at least in part by the attain-
ment of business interests.
As in other parts of the
world, in Asia this driver
appears to be stronger
among more recent business
groups that are still working
to secure themselves a strong
position in their economies,
and in which the founder is
still driving both the business
and the philanthropic effort.
In addition to other factors,
one group pursues enlight-
ened self – interest by doing
their philanthropy primarily
through their business. This
gives them an opportunity to
position themselves with gov-
ernment entities and within
the local communities they
operate in positively, at the
same time making a differ-
ence to people, by improving
their lives and helping them
acquire and hone new skills.
Community Standing
The commitment to com­
munity is exceptionally strong
in Asia, as is the need for
individuals to have a strong
standing in their communi-
ties (whether traditional com-
munities such as socio-lin-
guistic groups or modern
communities such as alumni
networks). Given the
strength of the affiliation
driver in Asia, we expect that
at least some of this is attrib-
utable to the pragmatic
desire for enhanced commu-
nity standing.
Dr. Lee Shau Kee was the
recipient of the prestigious
Grand Bauhinia Medal in
2007 for his public service,
the highest honor given in
Hong Kong.
Asia-Specific
Governmental Factors
Governments in Asia can
have an influence over philan-
thropic giving in many ways.
Controls over industrial policy
and financial resources, cor-
ruption in some countries,
domination of the develop-
ment agenda in some coun-
tries and restrictions of free-
dom of expression in some
countries, all tend to shape
individual and family business
and giving in many important
ways. It is to be expected that
philanthropy may be used as
a tool to influence govern-
ment actors or may flow in a
direction that is least objec-
tionable to governmental
interests.
In India, foundations often
partner with government in
order to not be seen as com-
petition, according to an
­anonymous philanthropist.

The Role of Government: The Case of Singapore

As with governments in much of Asia, the Singaporean government has a pervasive influence on family giving. This manifests
in a number of ways:
Government programs: In addition to excellent public schools and education systems, the government has, on a per capita
basis, the world’s most extensive subsidized public housing system. In addition, the Ministry of Community Development,
Youth and Sports addresses a wide range of social needs.
Tax structure, regulations: The Government allocates tax-free status to approved charities and provides substantial tax
deductions to businesses that make contributions to approved charities. The registration of charities is tightly controlled:
for instance, it is very difficult to register a philanthropy that will conduct most of its operations overseas. Tax benefits are
tied to registered charities.
Match-funding initiatives: A substantial portion of family donations are drawn to the university sector through government
match-funding initiatives that enable leveraging of contributions by such families.
Facilitation bodies: The National Volunteer and Philanthropic Centre is a well-funded and effective government-sponsored
body that promotes and coordinates volunteerism and philanthropy.
Cause promotion: Government agencies and government-controlled companies will promote targeted causes and encour-
age the private sector to contribute to such causes as well.

40
The State of Institutionalized
Family Philanthropy in Asia
Principal Insights:
– The professionalization and institutiona­ – Many family philanthropic initiatives are still
lization of family philanthropy across Asia is strongly intertwined with family business. This
­relatively recent and this development has intertwining of business and philanthropy has
not caught up with the rapid pace of wealth both positive elements (e.g. greater effective-
creation across the continent. ness) and negative elements (e.g. challenges in
scaling).
– Principal challenges to the development
of a much larger and more effective sector
include:
· Need for more effective, scalable and
There is a strong bias in Asia
­transparent implementation partners. towards family philanthropic
· Need for greater collaboration and pool-
ing of resources. initiatives maintaining opera­
· Need for more professional management
at the philanthropy level.
tional control, rather than
· Need for more training institutions and ­working collaboratively or as
­sharing of best practices.
· Need for more facilitative and even-handed grant-making entities.
government regulations and policies.

Developments and Challenges There are obvious outliers: for example, family foundations
In general, the use of specialized legal entities for, or of or charitable trusts first appeared in India in the 1880s and in
­professionals fully dedicated to, managing the philanthropic Japan in the 1920s; and some Islamic waqfs (trusts) in India
activities of families in Asia is a very recent phenomenon. and Southeast Asia have a considerably longer lineage.

Philanthropic Unit Decade of Establishment

China 3% 25% 72%

Hong Kong 9% 17% 9% 63%

1930s
Indonesia 12% 25% 63%
1950s
Malaysia 15% 15% 15% 54%
1960s

India 4% 13% 8% 4% 29% 42%

1970s

Singapore 6% 13% 25% 56% 1980s

Philippines 20% 20% 20% 20% 20% 1990s

2000–2011
Japan 3%3% 13% 10% 42% 16% 10%

Thailand 42% 25% 25% 8%

Taiwan 6% 27% 47% 20%

0 10 20 30 40 50 60 70 80 90 100

42
Despite being a recent phenomenon, professionalization
seems to becoming a prominent trend in the region, with a
slight majority of professional management among family
­philanthropies. On the country level, however, there is a wide
disparity in degrees of professionalization:

Management of Family Philanthropic Unit

(% of respondents, 2010)

Singapore 26% 74%

Thailand 33% 67%

Philippines 36% 64%

Malaysia 39% 61%

Hong Kong 50% 50%

Taiwan 50% 50%

Indonesia 56% 44%

China 60% 40%

India 62% 38%

Japan 83% 17%

0 20 40 60 80   100

  Family or individually managed

  Professionally managed

The relative newness of institutionalized family philanthropy

in Asia does not of course necessarily indicate immaturity
of the sector. There are examples of family foundations that
have been established relatively recently that have adopted
worldwide best practice from the start.

For example, the Sampoerna Foundation, founded in Indo­

nesia in 2001, “started out as a professional foundation from
day one,” and from the beginning has targeted achieving
­sustainability by generating revenue streams as a socially
minded business and by active management of an endow-
ment. As a forward-looking foundation, Sampoerna actively
researches global best practice as it strives to maximize its
social impact. started in China in 2004 as the wealth gap widened and was
catalyzed by the series of natural disasters from 2004–2008…
Nevertheless, the pace of economic development and the in the meantime family-controlled companies provide the
sheer number of recently established philanthropic activities most common legal vehicle for charitable donation but this
in Asia indicates the magnitude of the challenge. For example, position is likely to change in the future when tax breaks are
in mainland China, private wealth formation has had a pedi- made available by law.”
gree of less than thirty years: government regulation and
internalization of corporate governance best practice have yet The early level of maturation of institutionalized philanthropy
to catch up with the breathtaking pace of change in that in some countries is reflected in our respondents’ level of
country. According to Wang Liwei, CEO of the Charitarian institutionalization, and level of continuing informality in the
Group in China, “the regulatory environment for philanthropy grantee selection process.
in China has a long way to go, however we can expect a com-
prehensive Charity Law to be published in China in the next
two to three years…it is a game of catch-up as charity really

43
Among philanthropies
that have professiona-
lized, there is a strong
correlation with formali­ Family Philanthropies Identifying as Non-Profit Legal
Entities Principally Managed by Professionals
zation of the grantee (% of respondents, 2010)

selection process. This 77%

trend is less pronounced 70

where family members 60 58% 57% 56%

are still in charge of 50% 50%
50

the professional philan­ 42%

thropy. 40
36%
31%
30
25%
21%
20

10

0
Japan China Taiwan Hong Kong Malaysia Singapore
India Indonesia Average Philippines Thailand

Grantee Selection Process (% of respondents, 2010)

100

  Established process
  Informal basis

80

32% 33%
68% 35%
67% 38%
65%
60 62%
44%

49% 56%
50% 50% 50%
51% 50%
50% 50%

40
63%
37%

20 82%
18%

0
Japan China Taiwan Hong Kong Malaysia Singapore
India Indonesia Average Philippines Thailand

44
 Level of Formalization of Grantee/Project Selection However, it may be the case that the relatively low admini­
Depending on How Structured a Philanthropy Is strative costs of Asian philanthropies reflect not so much an
(% of respondents, 2010) achievement of a high degree of operational effectiveness as
100
under-investment in professionalization and institutionaliza-
tion. Steve Muncy of Community and Family Services Interna-
tional sees this phenomenon as, “a view that funds should
28% not be spent on administration and program management…
80
48% whilst understandable and positive in many ways, the failure
to invest adequate funds in these areas is also one of the more
significant risk factors for non-profits – including family foun-
60
76% dations… risks include less than optimal grant allocations, a
reliance on informal rather than systematic grant decision-
making processes, opportunities for corruption, and signifi-
cant grant-making disruptions when leaders leave, retire, or
40
72% pass away.”

52%
The need for greater and more effective professionalization
20
and implementation capability is perhaps the most commonly
24% voiced refrain all across the continent. According to Anurag
Behar, CEO of the Azim Premji Foundation, “the biggest hur-
0 dle to scaling up work in India is the lack of qualified people in
Individual or Non-profit legal Non-profit legal the sector. Commitment is not missing, but they have to learn
group of individu- entity principally entity principally largely on their own.”
als engaging in managed by managed by
philanthropy with employed pro- family members
no legal entity fessionals Share of Costs Dedicated to Administration
(% of respondents, 2010)
25
 e have clearly established guidelines and procedures for
W 24%
the evaluation and selection of grantees and projects
22%
 e operate on an informal basis in terms of selecting and
W
evaluating grantees and projects
20

Administrative costs among Asian philanthropies generally

appear to be under control. 57% of respondents had adminis-
15%
trative costs that were less than 10% of annual expenses. 15

Considered in isolation, this statistic is quite impressive: in

2009, the administrative costs of the Bill & Melinda Gates
Foundation were approximately 11.5% of annual expenses, 11%
while the administrative and program management costs of 10
the more operationally-oriented Ford Foundation were
approximately 17.5% of annual expenses. Given that Asian
philanthropies tend to be heavily operational in orientation as
discussed earlier, and that operationally oriented philanthro- 5%
pies tend to have higher administrative and program manage- 5

ment costs, this statistic is even more impressive.

<2% 2–5% 5–10% 10–30% >30%

Administrative costs

45
 Low Administrative Costs:
A Health Checklist
Are low administrative and program management
costs too much of a priority in Asia? The following is a
checklist, based on our interviews, of considerations
to be taken into account when evaluating such costs.
• Is there adequate investment in managing the
philanthropic initiative?
Lower administrative and program management costs
should not be achieved at the expense of effective
management of the philanthropic initiative.
• Is there a focus on established grantees
and programs, or on newly established grantees
and programs?
If the philanthropic initiative is focused on newly estab-
lished grantees and programs, it should expect higher
administrative and program costs than if it is focused
on well-established grantees and programs.
• Is the philanthropy grant-oriented or operations-
oriented?
Philanthropies that are grant-oriented tend to have
administrative and program management costs that are
lower than those that are operationally-oriented.
• Does the philanthropy engage in partnering or
take a solo approach?
Philanthropies that partner with each other tend to
have lower costs with greater management inputs
­relative to philanthropies that carry by themselves the
entire burden of program selection and oversight.
46
The Professionalization and Institutionalization
­Challenge
Based on our extensive discussions with philanthropists
across Asia, the following is an informal ranking of pro-
fessionalization and institutionalization challenges facing
the sector (challenges are identified in descending order
of importance):
• Need for more effective, scalable and transparent
implementation partners. Many philanthropists in Asia
feel that recipient organizations are inadequately
­effective, scalable and transparent.
• Need for greater collaboration and pooling of
resources. Philanthropies across Asia tend to work in
‘silos’ and, if at all, tend to collaborate and co-contrib-
ute more with international foundations or government
entities than with each other.
• Need for more professional management at philan-
thropy level. A common complaint among philanthro-
pists is that there is a significant shortage of profession-
als who are skilled in the systematic and strategic
management of resources for social impact.
• Need for more training institutions and sharing of best
practices. There is a substantial vacuum across Asia in
training programs and forums for sharing of best prac-
tices in relation to the management of philanthropies,
social enterprises and non-profit entities.
• Need for more facilitative and even-handed govern-
ment regulations and policies. Depending on the coun-
try, government regulations and policies are underde-
veloped and opaque, or tend to force philanthropies to
make contributions into predetermined channels.
A Family Foundation in Hong Kong* Rohini Nilekani

A History of Professionalism Creating Self-Sustainable Philanthropy

One of the older family philanthropic foundations in
Asia is also one of the most professional, with projects
focused on poverty alleviation, health care and education
being funded in tandem. The project sites are located
across China and Southeast Asia.
Foundation employees visit each site at least once during
the course of the project, and in most cases afterward to
assess the impact it has had on the community. One of
the main goals of the family philanthropy is to provide
lasting change in increasing the quality of life for the poor
and marginalized, and to this effect the head of the foun-
dation, a hired professional from outside of the family,
believes that “the best evaluation is to see the outcome.”
The foundation has a rigorous selection process for
grant recipients, where sustainability, trustworthiness,
chemistry with the foundation, fundraising ability, and
capacity building ability are all evaluated. The board
meets three times a year for updates on ongoing projects
and to evaluate new applications, as well as every four
to five years to access the selection procedures and adjust
if needed. At these meetings, the board also examines
the overall objective for their philanthropic activities,
so that a clear strategy can inform their grant-making and
partnership decisions.
*Foundation and interviewee kept anonymous as per interviewee request.
in India
Truly independent foundations that become public insti-
tutions disassociated from their founder are rare amongst
today’s philanthropists. As Chairperson of Akshara Foun-
dation, a partnership between the government and third
sector organizations like Pratham, Rohini Nilekani played
out what might become her trademark in philanthropy:
to take ownership of a project, make it self-sustaining and
then step back to allow fresh blood to take over.
Looking to learn more about what it means to be a
­philanthropist Ms. Nilekani also set up the Arghyam
Foundation in 2001 along with two friends. Initially the
foundation awarded small grants to projects in health
where they felt they could have the most impact. This
changed in 2004-2005 when she was able to endow
the foundation from the proceeds of the sale of Infosys
shares and subsequently assign it a clear mission: to
focus on water and sanitation.
Ms. Nilekani has always seen Arghyam as a personal
­mission rather than a family project. The distinction
is important to her particularly as the inspiration for the
organization is very much her own and she considers
its future to be as a self-sustaining, independent, foun­
dation delivering public services.
Yet her daughter, Jahnavi, is involved in Arghyam. This
is not out of “philanthropy nepotism” as Ms. Nilekani
puts it, but for the analytical skills (skill and expertise) that
Jahnavi acquired through her studies in the US and which
she brings to strengthen the foundation. Ms. Nilekani
also sees the foundation as a means for her daughter to
learn the ropes about being a philanthropist.

Most importantly, her daughter’s involvement reassures

Ms. Nilekani that someone trusted can continue the phi-
lanthropy tradition. If need be Jahnavi can ensure that
Arghyam conforms to the philosophy under which it was
set up and provide additional capital as may be required.

The recent institutionalization of family giving in most coun-

tries of Asia and the challenges facing this sector is reflected
in two significant characteristics of this sector in Asia: (1) a
deep interrelationship between family giving and family busi-
ness; and (2) the strong bias towards establishing operation-
ally oriented philanthropic initiatives. We discuss each of these
characteristics in turn.

47
Family Giving and the Family Business in Asia
With the exception of Japan, and to a lesser extent, Hong
Kong and Singapore, business families are generally still active
managers of their businesses. Most of the systematic and
strategic philanthropy across Asia derives from families that
represent and often still control business houses. This is
reflected in a large percentage of philanthropic funding com-
ing from the family business.
Origin of Family Philanthropy Resources
(% of respondents, 2010)
Perhaps the most compelling, yet seldom discussed, reason for
the relatively intense intermingling of philanthropy and business
is the general predisposition in Asia to reach across matters that
would otherwise be compartmentalized as familial, communal,
economic or political. This character is both a source of strength
and weakness. The dense set of interrelationships and cross-
linking of activities provides families and businesses with the
capability to mobilize resources at a low cost and to manage
risks. But this character also leads to suboptimal solutions for
any one particular initiative as the needs of different constitu-
ents are accommodated.

5% For example, utilization of business managers in a family’s phil-

anthropic activities tends to lower costs and draw commit-
11%  Other
ments from the business enterprise. But, by the same measure,
 Family company profits the philanthropic activity starts being shaped by the level of
30%
 One-time contribution commitment by the management and by overriding priorities.
14%
 Regular contributions
by family
 3rd party fundraising Dr. Yusuf Hamied
17% 22%  Occasional contributions Using Business Strengths in Philanthropy
by family
Dr. Yusuf Hamied is the Chairman and Managing
Director of Cipla Limited, one of the leading pharmaceu­
tical companies in India, and has an international repu­
While there is a spectrum of relationships between family tation for his work in reducing the cost of health care in
­giving, on the one hand, and family businesses, on the other the country. His philanthropic acts are partially inspired by
hand, our research indicates that a great majority of families a request from Mahatma Gandhi to his father, Cipla
in Asia tend to mingle closely their philanthropic and business founder Khwaja Abdul Hamied, to supply medicine for
activities. This is especially true outside of Japan, Hong Kong India during World War II.
and Singapore. In many cases family businesses don’t just
see themselves as profit-making forces; according to Indian One of the activities that Dr. Hamied has initiated 
philanthropist and businessman Dr. Yusuf Hamied “a com- through Cipla is the production of cheaper AIDS treat-
pany cannot be judged by the profit it makes but only by the ments. The company has also sold a record 70 million
good it does to humanity.” ­Salbutamol inhalers (treating lung diseases) per year for
just $2-3 each – six to eight times cheaper than in other
parts of the world. This has reduced the cost of health
care in the target areas: India and much of Africa. The
Yusuf & Farida Hamied Foundation, the family philan-
thropic unit, also focuses on health care in its charitable
giving, as Dr. Hamied believes that one should, “donate
what you are best at and contribute to society what
you can contribute…because I am in the healthcare line, I
do the best I can do to support healthcare.”

According to Dr. Hamied, selling these medicines at prices

affordable to those in the developing world is a form of
indirect philanthropy: “I would confidently say that 1.5
million people in Africa are being treated by Cipla at
humanitarian prices.” By this calculation, beneficiaries in
developing countries have been spared more than $4 bil-
lion in health care costs.

48
 Philanthropy and Business Interrelationship Models

Model Mode of Action Example

Complete Fusion Social Enterprise
The business is conceived and run
with the goal of social impact, but
operates as a for-profit entity.
Today in India, a family group runs an extensive network
of for-profit educational and healthcare facilities that have
made a substantial contribution to higher education In
India. The group’s corporate foundation also supports
thousands of young Indians with scholarships.

Close Connection Brand The Ayala Foundation is a foundation funded by Ayala

The family brand is leveraged across
the business, social and political sec-
tors.
Corporation, the principal holding company of one of the
largest Philippine family groups. The Foundation also
solicits funds from other Ayala Group companies and
from third parties. It also benefits from bearing the well-
known Ayala family name.

Funding The Tolaram Group in Singapore is involved in Fast ­Moving

Profits from the business sustain the Consumer Goods, Energy and Infrastructure. Profits are
philanthropic activity on a systematic used to both support Corporate Social Responsibility and
basis. family philanthropic initiatives in Singapore, other parts of
Asia and Africa.

Management One of the companies run by Thailand’s Chearavanont

The philanthropic activity is actively family, the Magnolia Corporation, has a CSR program that
managed with the support of business is largely administered by company executives who are
executives. also integral parts of the business side.

Contributions The founder of Bigfoot Entertainment, a film and media

The focus of giving is closely tied to group with its most substantial operations in the Philip-
the focus of the business. pines, has established a foundation which provides educa-
tion in villages in the Philippines through the use of film
and new media.

Partial Separation Formal Separation;
Crossover Benefit
The philanthropic activity is separately
funded and managed, but may enjoy
crossover benefits from the business.
Dr. Yusuf Hamied, the Chairman and Managing Director
of one of the leading pharmaceutical companies in India,
contributes to health care causes in developing countries.
The depth of Dr. Hamied’s expertise increases the impact
of what he can achieve, as he states it, “one should do
good in areas where one has expertise.”

Formal Separation;
Minimal ­Benefit
The philanthropic activity is separately
funded and managed, and crossover
benefits from the business are mini-
mized.
A major Thai family is extremely private about its substan-
tial philanthropic activities. The philanthropy does not
receive funds from the business, has its own management
and is named differently from both the family name and
the business name.

Complete Separation Principled Delinking The personal foundation of an established Singaporean

As a matter of principle, philanthropic
and business activities are kept com-
pletely apart.
entrepreneur in the fashion, hospitality and luxury indus-
tries operates on a distinct grant-making agenda while
her businesses invest in CSR and sustainability initiatives
specific to their line of business. This separation of objec-
tives includes geographical focus, with the Foundation
making grants primarily in the developing world where
there are no business interests.

49
Another important factor is the rapid rate of growth of wealth
in Asia. For example, over 45% of our respondents fund their
philanthropic activities from first generation wealth, including
the majority of interviewees from China, Hong Kong and
­Taiwan. Given the rapid pace of wealth accumulation in Asia,
it is not surprising that the professionalization and formaliza-
tion of the philanthropic sector has not caught up.
A third very important factor is governmental regulation of
the non-profit and philanthropy sector. For example, in main-
land China, there are significant challenges in establishing
a non-profit entity. In ­Singapore, it is easy to establish a non-
profit entity unless the focus of philanthropic activities will
be overseas. These factors tend to force the intermingling of
philanthropic and business activities: in China, entrepreneurs
address the difficulty of establishing non-profit entities by fund-
ing their philanthropic activities out of their business or estab-
lishing philanthropically focused units within their businesses;
in Singapore, philan­thropists tend to fund their overseas giving
through CSR activities or out of their personal funds.
In certain wealthier locations – Singapore and Hong Kong –
family philanthropies tend to contribute a higher percentage
of their annual giving to third party institutions. (This includes
not only NGOs but also universities). In Indonesia, in the wake
of the 2004 tsunami, the NGO sector gained strength and
now attracts contributions from family philanthropies as
well as international donors. But in much of Asia, there is still
a strong predisposition for family philanthropies to utilize
a substantial portion of their funding for their own projects
and initiatives.
One principal reason is the perception that large third party
implementing institutions (especially outside of the educa-
tional sector) are insufficiently effective and transparent.
Kathy Heinecke feels this way about working with large orga-
nizations in Thailand: “I think there’s a definite place for big
organizations; they probably do the best they can, but if you
give to something too big, it is inevitable that there is leakage
here and there. I prefer to be more hands-on, giving to grass-
roots organizations where we have better control.”

The emphasis in Asia on operational giving also leads to
­intermingling of philanthropic and business activities. Philan-
thropically minded families tend to extend the strong and well-
developed operational capacity of their business into their
­philanthropic activities. This is often the easiest, fastest, cheap-
est and most predictable route to effective operationalization.
Operational Concentration of Asian Family
Philanthropies
Across Asia, family philanthropies show a predisposition to
work in isolation from other foundations and to contribute a
significant proportion of their funds to directly managed proj-
ects and initiatives.
Another reason is that many NGOs are focused on securing
large scale funding from the government and bilateral and
multi-lateral agencies. In addition, such NGOs often have
shifting development agendas dictated by governmental and
especially international donors. Such NGOs are not ideal con-
duits for family philanthropies, which generally prefer to fund
specific causes close to family values and community goals
with a fairly high degree of consistency over time. As Chew
Kwee San from the Tan Chin Tuan Foundation puts it, “we’re
not interested in funding mega-projects, but would rather
support several small projects that service a large pool of indi-
viduals, so that as much of the funds as possible flow directly
to the beneficiaries.”

Focus of Philanthropic Funding An additional reason NGOs tend not to go after family
(% of respondents, 2010) ­philanthropy support is that sometimes it simply isn’t worth
the trouble. Steve Muncy describes this by saying, “family
45% 55% Average foundations often want to fund only that which directly bene-
44% 56% China fits the intended recipients—they are not keen to fund the
67% 33% Hong Kong admin costs the NGO incurs in running such projects and/or
33% 67% India the organizations…as such, NGOs often find going after,
as well as getting such funding, ‘costs’ more than is worth
85% 15% Indonesia
the effort.”
19% 81% Japan
55% 45% Malaysia
55% 45% Philippines
70% 30% Singapore
47% 53% Taiwan
32% 68% Thailand
0 20 40 60 80 100

Grants to other organizations

Funding to own operational activities

50
 William and Kathy Heinecke tion for funding, which is an important driver of transpar-
ency and efficiency. Michelle Sampoerna of the Sampoerna
Giving at the Micro Level Foundation advises that a foundation must ultimately focus:
“Decide whether you want to be a ‘grant-maker‘ or an
William and Kathy Heinecke are expatriates who have not
‘operational‘ philanthropist. Each approach will affect the
only become Thai nationals, but have also become involved
strategies and the tactics you will need in order to achieve
in helping the individuals and communities in their adopted
the vision of your organization.”
land. They see their behavior as being consistent with the
Thai way of life: giving as a way to be happy in your heart,
According to Lee Poh Wah, the CEO of the Lien Foundation
not only rich to poor, but amongst all levels of Thai society.
in Singapore: “Our challenge is to retain the business effec-
tiveness of the highly successful entrepreneur who founded
William Heinecke is the Founder, CEO and Chairman of
our philanthropy, and at the same time to create a generaliz-
Minor International, one of the largest hospitality and lei-
able, scalable platform for social impact across Asia that can
sure companies in the Asia-Pacific region with over 70
attract funding from all sources. So far we have found it easier
hotels, resorts and serviced apartments, 1,100 restaurants
to work with academic institutions, even government bodies
and 200 retail trading outlets, with a presence in Thailand
and small NGOs, than to work with other foundations. We
and in 20 markets across Africa to Australia. His companies
need to continue to broaden our appeal: we need to create a
have a robust corporate social responsibility program and
‘big tent’ that will accommodate all parties that wish to con-
engage in socially responsible investment, ensuring that
tribute to our chosen areas of social impact.”
they operate with a high degree of sensitivity to environ-
mental and ethical issues.
Social Entrepreneurship and Family Philanthropy
The field of social entrepreneurship (which includes not-for-
Apart from the company’s CSR activities, the Heineckes
profit ventures with innovative business models and both for-
have established an educational fund in memory of Roy E.
profit and not-for-profit ventures with earned income strate-
Heinecke, William’s father. The private fund offers scholar-
gies) is growing across Asia. Microfinance institutions
ship programs to children and young adults and is sup-
(especially in South Asia) have the most evolved social enter-
ported by the Heinecke family. The late Roy E. Heinecke
prise models, but innovative new social ventures are springing
spent many years serving the US Military in the Asia-Pacific
up all over Asia in education, food, health, infrastructure
region. Being exposed to cultures and the way of living in
development and tourism.
these countries inspired the wish for all deserving young-
sters to have access to education. The Heinecke family
So far, there is a limited connection between these social
established this scholarship fund to help fulfill this worthy
­ventures and family philanthropies. Most innovative new
wish. The rest of the family’s giving is informal; they even
social ventures in Asia obtain funding principally from the
entertain proposals for projects on scraps of paper. Recipi-
friends and families of the entrepreneurs, from local and inter-
ents usually return the funding for another recipient to be
national social venture funds and, in some sectors (such as
able to use; they have experienced a very high rate of suc-
microfinance), from governmental agencies and multilateral
cess with this arrangement.
donors. In particular, for-profit social ventures have generally
found it difficult to access substantial funds from family
According to Ms. Heinecke: “It’s important to find a proj-
­philanthropies. According to Lee Poh Wah: “We find that
ect that you’re not doing because of visibility or because
some of these social ventures have interesting possibilities for
it’s the ‘in’ cause to fund, but to find one that accomplishes
scalable, transformation impact, but under the terms of our
something, is not already well funded, and really does
present mandate, we cannot really provide substantial fund-
make a difference.”
ing for for-profit ventures. To do this, we would need to
establish a separately mandated initiative.”

These factors have contributed to the development of a ‘go-it
alone’ mentality among family philanthropies. And there is
much to be said for this approach: family philanthropies often
bring with them an operational tightness and business effi-
ciency that is missing in many Asian NGOs. On the other
hand, there is a heavy price to be paid for such operational
effectiveness: it becomes difficult to extricate worthwhile
projects from the control of individual philanthropies and
attract more widespread funding and talent. In addition, link-
ing funding and operations directly eliminates the competi-
Nevertheless, there is a growing interest among family
­philanthropies in the sustainable and transformative potential
of social ventures with earned income strategies. Thirty six
percent of survey respondents ranked Social Entrepreneurship
as the most important trend that will affect philanthropy
in Asia.

51
Important Trends in Philanthropy for families The Fundraising Challenge
(% ranked as number 1, 2010) Family philanthropies across Asia struggle to raise funds
from external sources for their favorite causes or to expand
 Social Entrepreneurship programs initiated by such philanthropies. Indeed, as previ-
6%  Values-based investing
7% ously noted, our respondents ranked this challenge as their
 Internationalization of most significant challenge by a wide margin.
­philanthropic activities
9% 36%
 Development of strategic Top challenges for Asian Family Philanthropists
partnerships/networks (2010)
9%  Demand for transparency
by donors
6%  Raising funds/
17%  Interaction across the pri- finding coinvestors
vate civic and public sector 33%  Fund management/
 New technologies 33% mission alignment
10%  Governance/
Members of the younger generation of more established busi- management
nesses and entrepreneurs who recently became wealthy were 11%
 Widening social impact
the most open to contributing to social ventures with earned 16%  Controlling costs/
income strategies. For example, one leading philanthropy in 12% operational efficiency
Hong Kong has created a separate funding allocation from  Other
which investments may be made into social ventures with
earned income strategies. This allocation was driven by, and
the related investment decisions are controlled by, a younger The challenge of fundraising for Asian family philanthropies
member of the family. may be viewed as a negative, if unintended, consequence of
the tendency for such philanthropies to focus on operation-
We are also witnessing the early stages of development of ally controlled programs. Such close association of a family
collaborative networks to bring together social entrepreneur- philanthropy with specific programs renders such programs
ship and family philanthropy. For example, in Hong Kong, less attractive to other philanthropies as conduits for philan-
Social Ventures Hong Kong, a venture philanthropic organiza- thropic contribution. To address the problem of transparency
tion, has begun to create an ecosystem of donors, investors, of implementing institutions, one family may set up a closely
social entrepreneurs and government agencies, with a view controlled program, but to another family this program may
towards promoting the acceptance, development and funding itself not look very transparent.
of social ventures, and creating a connection with start-up
social ventures and established family philanthropies.

Social entrepreneurship offers an avenue for family philan-

thropies to both have innovative, transformative social impact,
on the one hand, and contribute to self-sustainable initiatives,
on the other hand. There is accordingly a natural fit between
social ventures and family philanthropy. Over the years, we
expect that these two approaches to achieving social impact
will come together in exciting new ways.

52
According to Lee Poh Wah, the CEO of Singapore’s Lien
Foundation: “Family foundations have a difficult time raising
funds from other families in particular. It is often easier to
work with government agencies, NGOs and academic insti-
tutions. Families establish closely controlled programs and
then, as these programs grow, they find it difficult to attract
financing from other families.” The newness of philanthropic
fund-raising as a profession is also a major factor. According
to Chew Kheng Chuan, Chief University Advancement Offi-
cer at Nanyang Technological University: “Outside of major
universities, fund-raising for philanthropic purposes is a
newly emergent discipline. It is largely unsupported by train-
ing or diploma programs and the professionalization of the
discipline is still largely ahead of us.”
The importance of fundraising to recently established Asian
family philanthropists may also result from the fact that it
provides such a large portion of their resources. This point
was reflected in our survey data, where almost 80% of
foundations established after 1990 received at least some of
their funds from fundraising.
Dr. Kallam Anji Reddy
Applying Business Principles to Operating a Foundation
Some of India’s new philanthropists are building on the heri-
tage of the Tata and Birla families to establish professional,
transparent, and efficient operating institutions through
which others can donate. One such is the Dr. Reddy’s Foun-
dation. While the Foundation is the CSR arm of Dr. Reddy’s
Laboratories, a major pharmaceutical company, it has been
shaped by the very personal involvement of Dr. K. Anji Reddy,
the company’s founder, from its early days.
The 50th anniversary celebrations for India’s indepen-
dence provided the impulse for Dr. Reddy’s first forays into
philanthropy. During a drive through one Mumbai’s neigh-
borhoods, Dr. Reddy was struck by the immense poverty,
­evident even in relatively wealthy areas of the city. Looking at
the burgeoning business achievements of his contemporaries
he wondered why, if individually they could achieve so much
in business, they could not apply their drive to addressing
poverty.
The Dr. Reddy’s Foundation (DRF) was established soon
after. He continues to run it today, committing up to 50% of
Major Sources of Funding for Foundations Established
After 1990 (% of responding foundations, 2010)
21%
 Not using fundraising
from 3rd Parties
 Using fundraising
79% from 3rd Parties
The foundations and programs that have been relatively
more successful at fundraising from third parties are the
ones that have either established fundraising teams or been
designed with a view towards securing multiple sources of
funding. For instance, in Indonesia, the Sampoerna Founda-
tion’s dedicated marketing and fundraising has been quite
successful at raising third-party funds. According to Michelle
Sampoerna, this stems from the realization that “neither the
Indonesian government nor Putera Sampoerna Foundation
can solve (Indonesia’s) challenges alone. In the Philippines,
the Ayala Foundation will not support new programs unless
such programs are built on a collaborative platform which
includes the government and private sector and which is
capable of attracting funds from multiple sources.
his time. His efforts are complemented by his daughter, who
works full-time for the foundation, and by a professional
CEO and staff. The foundation is a Trust. It is funded through
Corporate and Government contributions with additional
donations from the Reddy Family.
The foundation’s most striking trait is that it is run very much
on certain corporate principles. Like many foundations and
third sector organizations in India, the Foundation faces the
challenge of finding and recruiting staff with the right experi-
ence to run its programs. Since getting good people in the
development sector is generally a challenge, DRF has devel-
oped its own internal program to train and develop its staffs’
skills. In 2009 the foundation launched its ‘Performance
Reward Policy’ on a pilot basis thus becoming one of very
few organizations in the field that provide staff financial
incentives linked to performance.
As Jitendra Kalra, CEO of the foundation, puts it, the DRF is a
life-size laboratory for how “corporate best practices can be
made use of in making social interventions more effective.”
53
Principal Findings and Outlooks
Opportunity and Challenge
Finding:
The combination of the breathtaking rise of prosperity
and the persistence of large-scale social and environmen-
tal challenges across Asia opens up transformational
­possibilities for family philanthropy. With governments
struggling to deliver social services and public goods to
increasingly expectant populations and business corpo-
rate social responsibility programs at a fledgling level,
there are endless possibilities for families to make funda-
mental contributions through their philanthropic efforts.
Outlook:
Families that strategically position their philanthropic
activities in the context of the rapidly evolving opportuni-
ties and challenges to transform Asia, on the one hand,
and the aspirations and limitations of government and
business, on the other hand, are likely to achieve the
greatest impact.
Family Benefits
Finding:
Family philanthropy already plays a critical role in count-
less large and complex families across Asia (1) instilling
and driving family values, (2) strengthening family bonds,
(3) providing opportunities for family members to
embrace meaningful responsibilities and (4) transmitting
knowledge and building capabilities among family mem-
bers.
Outlook:
The most effective philanthropic initiatives will involve clearly
identified family-oriented values and benefits and well-devel-
oped strategies for expressing such values and realizing such
benefits.
The Inter-Generational Divide
Finding:
The rapid pace of change across Asia has led to genera-
tions within families with vast differences in experience
and aspirations. Older generations tend to be more cog-
nizant of the importance of giving to their communities
and to ‘traditional’ sectors such as education and health,
and are often more comfortable with patriarchal (or in
fewer cases collegial) models of governance. Younger
generations tend to be more internationalist in their out-
look, accord greater value on giving to causes relating to
the arts and culture, environment and civil rights, tend to
prefer collegial or managerial models of governance and
are much more open to social enterprise and social value
investment models.
Outlook:
Generational diversity is a source of great strength for
Asian families, businesses and philanthropies, but it must
be actively embraced as a source of strength, rather than
allowed to become a basis for discord. The most success-
ful Asian philanthropies will develop the capacity to
accommodate the aspirations of different generations
and develop models of governance that allow for mean-
ingful exchanges and contributions by all family mem-
bers.
The Importance of Community
Finding:
Communal affiliations, especially within members of
a socio-linguistic group, are exceptionally strong drivers
for philanthropy in Asia and this applies as much to the
­Chinese, Indian and other diasporas as it does to commu-
nities within a given country. While such communal
bonds are somewhat weaker among the more affluent
countries and among the younger generation, it should
be expected that community-driven giving will continue
to be a critical feature of philanthropy in Asia.
Outlook:
The exceptionally strong community orientation among
Asian families both acts a spur to giving and ensures an
informal but very real level of effectiveness and account-
ability in giving. At the same time, this orientation needs
to balanced with considerations of social impact: one
should give where one wants to give but also where such
giving is most needed and where one’s contributions can
have the most impact. The most successful philanthropies
will develop multi-tiered criteria for giving that balance
family orientation and values with considerations of gen-
uine need and social impact.
55
 The Importance of Education
Finding:
A range of experiential and normative factors drive family
giving in Asia almost irresistibly towards education. In
some cases, such giving is critically required and has great
positive impact. In other cases, such giving is safe but
duplicative and has relatively low impact. In many cases,
older generations were addressing critical social needs of
their day by contributing, for example, to the develop-
ment of universities: in some cases, that form of contribu-
tion has been perpetuated more in the interests of tradi-
tion than social impact.
Outlook:
The education sector across Asia continues to demand
massive investment from the governmental and private
sectors, as well as from family philanthropies. But as gov-
ernment investment becomes more effective and for-
profit investment becomes more entrenched, philanthro-
pies will need to work harder to find strategies for
maximal impact.
In many cases, donations for construction of schools and
to well-funded universities may not have significant social
impact. Areas that are ripe for such transformational con-
tribution include curriculum development and teacher
training, wide scale deployment of next-generation learn-
ing technologies, special needs education and skills devel-
opment, as well as more generalized educational initia-
tives in underserved communities.
56
The Opportunity to Lead
Finding:
Sectors such as poverty alleviation, development and
healthcare require large amounts of sustained funding.
Although these are high-ranking sectors for contributions
by families in Asia, the financial requirements of these
sectors are beyond the scope of single-family foundations
and usually even groups of such foundations. Moreover,
government and international involvement in these sec-
tors tends to marginalize the contributions by Asian fami-
lies. Nevertheless, across Asia, family philanthropies have
demonstrated their ability to move quickly and act freely
and innovatively in these sectors.
Outlook:
In sectors such as poverty alleviation, development and
healthcare, there is considerable room for families to play
a catalytic role in addressing emerging problems and
funding innovative new solutions and innovative new
models of giving. In this way, families can act as the
advance guard for positive social, economic and environ-
mental impact in Asia. In particular, family philanthropy,
with its strong roots in entrepreneurship, can play a semi-
nal role in advancing (a) community-based enterprise
models and (b) individual entrepreneurship.
The Focus on Root Causes
and Impact
Finding:
While considerations of measuring social impact have
not been a major driver for traditional giving, members of
the younger generation among more established wealthy
families, as well as newly emergent entrepreneurs across
Asia, are beginning to ask how they can deploy their
money and entrepreneurial capacity to address the root
causes of social and economic problems across Asia.
Outlook:
Asian entrepreneurs today are confident, forward looking
and increasingly capable of taking on large, international
challenges. The application of the business confidence
that is prevalent across Asia to address the root causes of
social and environmental challenges and to have large
scale impact is the most exciting and transformational
development in the philanthropic sector in Asia. How-
ever, such transformational impact will require transfor-
mation in the way philanthropy is conducted across Asia:
philanthropy will need to be far more strategic in its
focus, collaborative in its orientation and professionalized
in its conduct.
Addressing Core Challenges
Finding:
The principal challenges to the development of a
much larger and more effective philanthropic sector in
Asia include:
• Need for more effective, scalable and transparent
i­mplementation partners.
• Need for greater collaboration and pooling of
resources.
• Need for more professional management at the
­philanthropy level.
• Need for more training institutions and sharing of
best practices.
• Need for more facilitative and even-handed
­government regulations and policies.
Outlook:
To address the challenges facing family giving, philan-
thropic initiatives will need to be more demanding of im-
plementation partners, more willing to collaborate, more
willing to invest in professionalization and institutiona­
lization and more willing to address government policy
towards social and environmental matters and towards
the regulation of philanthropy itself. A common challenge
underlying all these challenges will be the need for phi-
lanthropies to contribute more fully to the business of
philanthropy and social impact itself. Philanthropists can
achieve long lasting social impact by supporting aca-
demic institutions, benchmarking studies, best practice
repositories and networking associations and events that
advance professionalization of the sector.
The Imperative for Attitudinal
and Internal Change
Finding:
Family philanthropies across Asia have by and large
remained fairly closely integrated with family businesses.
There is similarly a strong bias in Asia towards family
­philanthropic initiatives maintaining operational control,
rather than working collaboratively with other social
impact organizations or as grant-making entities.
Outlook:
These factors have ensured cost control, operational
effectiveness and transparency of processes and out-
comes. But they have also held back the development of
larger scale social impact institutions across Asia. If fami-
lies across Asia are looking to have transformational
impact on the social and environmental challenges facing
the continent, they will need to begin with transforming
their own patterns of giving towards less autonomy and
more collaboration: lesser degrees of direct influence will
need to be accepted in order to achieve greater degrees
of less direct but more pervasive impact. Finding the right
balance between personal involvement and greater col-
laboration and professionalization will constitute a key
challenge for the sector.
57
Country and Philanthropist Profiles

59
China
A Profile of Giving
– Cultural Values. Chinese traditional culture strongly
emphasizes the importance of society as opposed to the
individual. The religious and philosophical traditions of
­Buddhism, Confucianism and Taoism also encourage the
practice of charity.
– Concentration of Giving. In 2008, 89.2% of charitable
donations went to government-affiliated charity organiza-
tions, the Red Cross Society and programs run through the
Department of Civil Affairs.
– A Recent Phenomenon. As only about 30 years have trans-
pired since private wealth accumulation has been possible,
philanthropy in mainland China is a recent phenomenon that
is gaining momentum. The outpouring of support following
the 2008 Wenchuan earthquake in Sichuan proved to be a
watershed moment in the development of modern philan-
thropy in China. The number of private foundations doubled
from 2007 to 2009, from 436 to 846. 66% of our China-
based respondents indicated that they had formalized their
philanthropic activities in the years after 2000. As the sector
matures, philanthropists are becoming more professionalized:
more than half of our respondents indicated that they have
established guidelines for their grantee selection process.
60
–G
 eographical Focus. In terms of geographical focus, 76%
of the funds dedicated by our China-based respondents
in 2010 were targeted inside the Chinese mainland at the
local, provincial and national levels.
–S
 ocial Entrepreneurship as a Growing Trend. ‘The emer-
gence of social entrepreneurship’ was rated as the most
anticipated trend by 40% of our China-based respondents.
The Government and Giving
– Strong Governmental Control. Of all the countries
­surveyed, mainland China generally has the strongest level
of governmental control over philanthropy and social wel-
fare. The central, regional, provincial and municipal govern-
ments all exert a substantial degree of control over philan-
thropy and social welfare and provide different kinds of
educational, health, welfare and other social programs of
their own.
–D  ifficulty of Registration and Operation. Considerable
effort is required to register private philanthropies, charities
and NGOs, and even those that are registered find it difficult
to operate across geographies or sectors.
– F und-Raising Restrictions. Most non-governmental
­organizations and private foundations are prohibited from
 raising money publicly in China. As a result, most dona- Ethnic Distribution
tions go to government-affiliated organizations such as the
Red Cross Society of China and the China Charity Founda-
tion, which are often criticized for not being sufficiently
transparent.
– Collaboration with Government-Affiliated Organiza-   Han Chinese 91%
tions. Because of the restrictive environment for private
  other 9%
philanthropies and NGOs, most individuals, families and
businesses that are seeking to have a social or environmen-
tal impact tend to work with one or more government bod-
ies at the various levels of government in China. In many
cases, satisfactory results are obtained, especially when the
private sector group is able to identify appropriate local
agencies. In other cases, complaints arise that the govern-
Basics
ment agencies are unresponsive or lack transparency. Scan-
dals implying misdirection of charity funds threaten the Population Millions 1,337
development of grass-roots philanthropy, by reinforcing
Population Growth Rate <1%
public mistrust for such organizations.
– Proposed Charity Law. To address the regulatory and tax GDP Per Capita (USD) $7,400
issues surrounding philanthropy in China, the Government is Avg. Annual GDP Growth/Capital 16.69%
drafting a comprehensive new charity law. The new law is (2000-2010)
expected to cover rules on taxation, formation, registration,
management and fund-raising activities of domestic and Population Below Poverty Line 13.90%
overseas charities. The much-anticipated law might go into (US$ 1.25/day)
effect in 2013 or 2014. Adult Literacy Rate 91.6%
Avg. Life Expectancy (Years) 75
Institutions and Giving
– The Institutionalization Challenge. Because of the Infant Mortality (per 1,000) 16.1
recency of the growth of the enterprise and philanthropy
sectors, the availability of professional staff to operate phi-
lanthropies is a very significant challenge.  The CEOs of
enterprises who may want to support philanthropic initia-
tives more fully are typically too involved in business to
devote sufficient time to philanthropy. And, because of the
‘one child’ policy, there is a relative shortage of family mem-
bers who can devote time to philanthropic activities. Many
individual, family and business philanthropic initiatives are
delegated to retired government officials, who handle such
initiatives on a part-time basis.  The net result is that individ-
ual, family and business philanthropies are sub-optimally
managed.
– Emergence of Philanthropy Support. It is early days in
the growth of professionalized philanthropy in China, but
supporting initiatives are emerging. Two small firms that are
gathering information and best practices relating to the
­sector with both a Mandarin and English speaking audience
are Charitarian and Hurun Report.

61
Huang Rulun

Giving to the Rural Poor
From a farming family in coastal Fujian province, Mr. Huang
has never forgotten his humble roots or the Confucian and
Buddhist moral emphases on the value of giving. His eco-
nomic background and religious values inspire his seemingly
random acts of philanthropy. His life experience has also
helped him appreciate the beneficial impact that philanthropy
can have on future generations of today’s beneficiaries.
Mr. Huang’s son helps him run the family business, and will
be involved in the family foundation’s charity work as well.
Mr. Huang values the knowledge that can be gained through
education, both as a means for lifting individuals out of
­poverty and as a way to develop communities as a whole.
His donations have targeted Western China, which has large
­populations of impoverished minority groups and former
­agricultural migrant workers.

Currently number 2 on Hurun’s list of top philanthropic Education Donation Strategy

donors in China, Mr. Huang has come a long way. At the age • Target areas with limited resources to devote to education
of 15, Mr. Huang left school and started his own series of and with significant, defined impoverished populations.
entrepreneurial endeavors, first in Fujian, then in the Philip- • Support students who would not otherwise have the
pines, then in Hong Kong, then back in Fujian, and finally in resources to attend and excel in school.
Beijing, where he is now the chairman of the leading real • Support teachers and institutions so that they can offer a
estate company that he founded, Century Golden Resources higher quality learning environment.
Group. • Help the lowest strata of society break the cycle of poverty
through high-quality education and the capacity for higher-
Mr. Huang is generally known for one-time and spur of the paying jobs.
moment donations, which correspond with his belief that
charity should be spontaneous and not calculated for per-
sonal glory or gain. While he still donates in this ad-hoc way
to disaster relief and other one-off causes, Mr. Huang has set
up the locally-focused Fujian Jiangxia Charity Foundation,
which he directs, and plans to set up a family foundation
soon. This foundation, with which he plans to be involved in a
professional manner, will allocate funding on a more sustain-
able basis. Before this, he has generally kept his role in philan-
thropy as purely a funder of causes, and stuck to what he
knows best, entrepreneurship and business.

62

Kunming, the capital of Yunnan where Mr. Huang engages
in philanthropy
Educational Donations to Inland Provinces
Despite China’s steady economic growth in recent years,
there is still a large gap between mostly coastal wealthy prov-
inces, and inland provinces that are comparatively poor and
underdeveloped. With the large populations of rural poor and
migrant workers, access to education for the impoverished
hinterland provinces has become a pressing issue.
One of the most ethnically and geographically diverse prov-
inces in China, Yunnan is also one of the poorest. Generally
underdeveloped, its GDP is less than half of its comparably-
sized neighbor Sichuan, and eleven of Yunnan’s counties have
population poverty rates above 30%.
As the Chairman of the Century Golden Resources Group,
Mr. Huang donated substantially to relief of impoverished stu-
dents including migrant workers’ children, as well as to edu-
cational institutions in Yunnan: Yunnan Normal University, the
Yunnan Provincial Department of Education, and the Yunnan
Provincial Government Education Foundation. He also
donated to the Minority University’s Impoverished Students
Project, providing scholarships to minority students, as well as
scholarship funding in rural areas including Baoshan, Dehong,
Pu’er and Lincang.
Contributions to the education of minority and migrant
worker children can help break the cycle of poverty for those
populations, which occupy the lowest tiers of society in West-
ern and other parts of China.
63
Niu Gensheng
Philanthropy as a Means Toward Social Harmony
After humble beginnings as a bottle washer at Inner Mongo-
lia’s Yili Dairy, Mr. Niu has risen to the top of China’s dairy
industry and China’s growing list of philanthropists. His tenure
as the founder and CEO of Mengniu Dairy Industry Group
brought the company to number one status in the Chinese
dairy industry, and earned him the position of one of China’s
Most Influential Business Leaders five years running. Mr. Niu
received the first and only “Lifetime Achievement in Philan-
thropy Award” presented by the “China Philanthropists List”
in 2010 and the “China Philanthropy Award” by the Ministry
of Civil Affairs of the People’s Republic of China in 2011, and
was among “China’s Top 10 Philanthropists” in 2007.
Growing up during the Cultural Revolution, Mr. Niu is no
stranger to instability. He withstood great hardship as the
adopted son of parents from a targeted social class as China
went through a period of political and social chaos. The chal-
lenge of overcoming the bullying and criticism of his peers,
and reaching a leadership position among them, left a deep
impression on him and on his attitude towards adapting to
overcome adversity.
Mr. Niu believes that, as a socially responsible entrepreneur,
profits and business growth are important, but helping others
is a more important goal. This belief is reflected in his decision
to donate his entire holdings of Mengniu company stock to
64
the Hengxin Trust for Charity, which lists as beneficiaries: the
Lao Niu Foundation, the Red Cross Society of China, the
China Foundation for Poverty Alleviation, Jet Li’s One Founda-
tion, the Nature Conservancy and the Inner Mongolia Charity
Federation. These organizations cover a wide range of charity
activities within China, such as supporting education in rural
areas, combating desertification in Inner Mongolia, preserving
ethnic minority culture, assisting students in poverty and pro-
viding health care support.
Through his philanthropic activities, Mr. Niu hopes to be able
to contribute to the public good and social harmony in China
through six components: progress towards a culture of char-
ity; environmental protection; supporting education; facilitat-
ing access to medical care; supporting agricultural livelihoods;
and supporting disaster-stricken and impoverished popula-
tions.
Lao Niu Strategy
• Partner with organizations that are highly regarded as credi-
ble and reputable.
• Partner with locally-focused organizations that have
­extensive knowledge of the local situation.
• Choose a variety of important causes to support,
in order to reach the most number of beneficiaries across
the community.
Lao Niu Foundation Inner Mongolia Philanthropic Projects (2005 – 2010)

Cause Donation Recipient Project Aim

Arts Inner Mongolia Herdsman Calligraphy Research Association Preservation and development of traditional art
Culture Inner Mongolia Normal University Minority cultural studies building facilities
Education Inner Mongolia Student Federation Helping impoverished students
Education Inner Mongolia Youth Development Fund School development funding
Education Jade Spring District Funding educational facilities
Education Horinger County Government Supporting impoverished college students
Education Inner Mongolia Workers’ Committee Supplying migrant workers’ children with school
computers and books
Environment Nature Conservancy Combating desertification in the province
Health Horinger County Middle School Medical services for disabled students
Health Inner Mongolia Elderly Physical Education Society Provincial sports competition
Health Inner Mongolia Provincial Government Provincial health and medical projects
Health Hohhot City First Aid Center Supporting health care activities
Health Hohhot Red Cross Leukemia Research
Health Horinger County Disabled People’s Union Support disabled persons’ activities
Poverty Inner Mongolia Poverty Alleviation Society Alleviating poverty in the province
Poverty Hohhot City Charity Supporting charitable activities
Poverty Horinger County Economic Park Regulatory Commission Supporting regional and national charities
Poverty Hohhot City Government Poverty Alleviation

Lao Niu Foundation Partnerships with organizations such as the China Foundation
Mr. Niu has been involved in charitable giving for many for Poverty Alleviation and the Red Cross Society of China
years. Through the Lao Niu Foundation, he has provided fund- increase the effectiveness of how donations are used: such
ing for a variety of beneficiaries across China. The grant- organizations are more cost effective in their area of opera-
making focus of the Lao Niu Foundation is: environmental tions, because they understand the needs of the region and
protection, education, health care as well as other causes. their people, and are capable of identifying and delivering to
the most deserving beneficiaries.
The foundation seeks to bring aid to the regions where help is
most needed and able to benefit as many people as possible.
This strategy increases the impact of giving by avoiding redun-
dancies, and brings aid to more regions in need. Also, in such
regions, the approach can solve the problems of the people in
need and increases the quality of life for residents of all ages
and backgrounds.

65
Yeung Kwok Keung
Long-term relief for those in need
Yeung Kwok Keung is the co-founder and chief executive of
Guangdong-based Country Garden, one of the biggest prop-
erty development companies in China. From its inception in
Guangdong, the company’s expansion to other cities and
areas in China was made possible by economic liberalization
policies put in place by Deng Xiaoping in the 1980s.
Mr. Yeung comes from a poor village in Guangdong, where
his family made a living from raising cattle and farming. He
later became involved in construction as a bricklayer and con-
tractor, and subsequently co-founded his real-estate develop-
ment company. The company struggled with the tepid real-
estate market at the time, but eventually grew as a leader in
the local, provincial and finally national market. For a number
of years, Mr. Yeung and his family were ranked among ­China’s
wealthiest entrepreneurs.
Secretary Wang Yang (left) and Mr. Yeung Kwok Keung (center) treated with the utmost
­cordiality by villagers of Shushan, a village supported by Country Garden
66
Mr. Yeung’s philanthropic activities are generally funded by
himself and his family, or directed through Country Garden,
with a large amount of support going to poverty relief in vari-
ous parts of China. Mountainous Western China is where
many of the poorer populations in China are located. Country
Garden has supported activities in Sichuan to provide educa-
tion and health access in impoverished rural areas, supported
a construction project for new rural highways to facilitate the
transportation of goods to market, and supported social
entrepreneurs in the region to enable them to create sustain-
able projects to stimulate the economy and create a more sta-
ble social environment. Mr. Yeung has also started the first
pure charitable and free education institute in China, which
provides free educational opportunities to outstanding junior
middle school graduates who cannot continue education due
to poverty, and has also established and supported vocational
schools for people discharged from the Chinese armed forces,
providing work training for more than 4,000 veterans.
In 2008, China was hit by two major disasters within a
matter of a few months. When a crippling cold weather spell
hit 20 provinces and municipalities in February, Country
­Garden responded with donations for immediate disaster
relief. Then, in May, an earthquake measuring 8.0 on the
Richter scale hit rural Sichuan province and devastated the
region. Country Garden responded with a long-term
approach, supporting the relief effort, victims of the quake,
students in the area and the community as a whole.
Yeung Kwok Keung’s Disaster Relief Strategy
• Be holistic and sustainable, and focus donations on initia-
tives that address the long-term aftermath of the disaster.
• Fund initiatives to restore the economic engine of the
affected region, to end reliance on outside funding as soon
as possible.
• Ensure that educational activities continue as soon as
­possible, so that time isn’t lost in academic development.
To ensure the sustainability of disaster relief, a holistic
approach was taken to address the needs of those affected:
1. D
 isaster relief for the immediate needs of quake victims
and rescue workers to make sure that the casualty count is
kept as low as possible.
2. Donations supporting orphans of the disaster, who have
lost the stability of a family, as well as other children who
have been affected by the disaster.
3. P ost-disaster relief for the work of rebuilding the disaster
area to a condition that can allow for resumption of daily
life, and counseling services to help victims cope with their
new reality.
4. Support to schoolchildren who cannot be accommodated
in the disaster area for lack of facilities, and their relocation
to continue their education.

Disaster Relief in Sichuan

The devastation of the Sichuan earthquake provoked a
whole-hearted response, with relief donations from other
parts of China and other countries flowing to aid agencies in
the area. Through Country Garden, but mostly by himself and
with his family, Mr. Yeung also supported disaster relief activi-
ties for victims of the natural disaster, but donated to causes
with initiatives that addressed longer-term effects as well. For
example, the China Social Entrepreneur Foundation focused
on incubating economically sustainable projects in the
stricken region.

In the aftermath of the quake, students had nowhere to learn

because of the collapse of many school buildings. In response,
Mr. Yeung funded the relocation of more than 1,400 of these
students and their teachers to Guangdong, where he funded
the continuation of their studies for one year at the sites of
schools that he had established earlier.

67
Hong Kong
A Profile of Giving
– Historical and Cultural Influence. Because of their reluc-
tance to have an influx of mainland Chinese immigrants,
the British colonial government that governed Hong Kong
from 1842-1997 took a wary approach to philanthropic
activity in Hong Kong in its early stages. During the colonial
period, minority ethnic groups, notably Hong Kong’s Sep-
hardic Jewish business families, played a significant role in
developing philanthropy. Later as economic activity
increased in the colony, the government looked to churches
and volunteer organizations to provide essential social ser-
vices to fill gaps in social services for the needy
and new immigrants.
– Anonymity of Family Giving. There is a deep-seated
tradition of anonymous giving among Hong Kong’s wealthy
families, deriving from the Chinese cultural value of modesty.
68
– Family Values in Philanthropy. In the case of Hong
Kong, traditions and values have a strong influence
on philanthropic giving. 73% of our Hong Kong-based
respondents cited ‘ensuring continuity of family values and
creating a legacy’ as a significant reason for their giving.
46% of respondents also said that family tradition and
teaching the next generation about family giving were
core reasons.
– Geographical Focus. 40% of our Hong Kong-based
respondents said that they fund social causes on the
national level. While this means within Hong Kong, most
of the education and poverty alleviation projects supported
by Hong Kong philanthropists are in mainland China.
– A propensity to mobilise quickly. Hong Kong people
are known for their generosity. Whenever there is a major
disaster in China or in the region, regardless of background
 they always respond swiftly by organizing fundraising Population distribution
events, making large donations to people in need and get-
ting personally involved.

The Government and Giving   Chinese 95%

– Tax Incentives. The Hong Kong Inland Revenue Ordi-   Filipino 2%
nance provides for tax exemptions for charitable organiza-  Indonesia 1%
tions. Organizations that operate in the fields of poverty
  other 2%
alleviation, education and religious activities are eligible for
tax exemption even if they are operating in areas outside
of Hong Kong.
– Low Personal and Corporate Taxes. The rates of per-
sonal income tax and corporate income tax are compara-
tively low, and there are no capital gains taxes in Hong
Basics
Kong. This allows for more disposable income to be set
aside for charitable reasons. Population Millions 7.1
Population Growth Rate <1%
GDP Per Capita (USD) $45,600
Avg. Annual GDP Growth/Capital 2.56%
(2000–2010)
Adult Literacy Rate 93%
Avg. Life Expectancy (Years) 82
Infant Mortality (per 1,000) 2.9

Institutions and Giving

– A Stepping Stone to Mainland China. Many NGOs
that operate in mainland China are based in Hong Kong
because of the relative flexibility of government regulations
of NGOs compared to the mainland. These organizations
either operate partially in Hong Kong and partially in China,
or exclusively in China. Shenzhen, the mainland Special
­Economic Zone adjoining Hong Kong is a popular area of
operation.
– Filling the Service Gap. Hong Kong NGOs provide needed
services to and advocacy on behalf of immigrants coming
from mainland China.

69
Lee Shau Kee

Investing in the future through human Dr. Lee focuses on education because it has the largest
development ­leverage and empowerment effects. His contributions to edu-
Born in 1928 and raised in cation include donations to schools and all the universities in
Guangdong, China, Dr. Lee Hong Kong including the University of Hong Kong and the
Shau Kee was introduced to Hong Kong University of Science and Technology, as well as
business at an early age leading universities around the world. Dr. Lee also provides
through his father’s gold and scholarships to higher learning institutions like Fudan Univer-
silver shop. His family moved sity in Shanghai and Oxford University in the UK. The Warmth
to Hong Kong in 1948 during Project in China provided job training to over one million rural
the revolution, where he sub- farmers and placed them with jobs. His charitable foundation,
sequently entered into the the Lee Shau Kee Foundation, contributed US$ 12 million to
land development business. the Wenchuan earthquake relief effort in 2008. In addition,
his company’s philanthropic arm also supports education and
While a student, Dr. Lee community projects, as well as cultural activities, environmen-
was inspired by his teacher’s tal education and ­sustainability and public events.
teaching to “save civilian people from hardship and afflic-
tion,” or more generally to help other people. Later, after suc- As part of his commitment to give back to the community,
cess in business, Dr. Lee took this inspiration and established Dr. Lee is also attempting to make a difference on a macro
a reputation for business ethics and philanthropic efforts. level. Since the global financial crisis, Hong Kong’s invest-
He seeks to leverage his success and position to help the wid- ment environment has become unstable, with stock prices
est section of society. His goal is to reduce the wealth gap slow to rebound. As a vote of confidence in future business
and create harmony in society. Dr. Lee’s philosophy for prosperity, he has committed to annually donating to charity
­philanthropy is: around US$ 130 million if the Hang Seng stock index sur-
1. L everage, by using limited resources to help as many passes 30,000 points, and around US$ 260 million if it sur-
people as possible. passes 40,000 points. While ­market increases would mean
2. Empower by helping people stand on their own feet. good news to his own stock portfolio, he has decided to
3. R esources donated have to be well spent and their pass those gains on to the greater good.
impact measured.
4. Donate not only financial resources, but also personal
time and involvement.

70
The Warmth Project Strategy By focusing on the development of individual human poten-
• Invest in human development; through access to educa- tial, the Warmth Project creates ripple effects benefiting the
tion and job training, people can improve themselves and larger community. Skilled workers earn more money, and
their communities. help to develop rural economies through their spending.
• Increase the earning potential of low-skilled farm laborers Employers set up shop in places with a concentrated skilled
by equipping them with higher-level skills. workforce, and so jobs are created for the trained workers as
• A labor pool with a higher level of skill can result in the well as other members of the community. At the same time,
attraction of employers to the area, improving the area’s an increase in trained medical workers means better access to
economy. medical treatment, a healthier community and a higher
• Improving availability of medical and other basic services ­standard of living. Access to fundamental services, such as
raises the area’s health standard and improves quality of life. clean drinking water, also serves to improve public health
standards and overall quality of life.
The Warmth Project
Headed by Dr. Lee’s son, Peter, the Warmth Project is a
­large-scale human and infrastructure development project
targeting almost all of China’s provinces, with total funding
of more than US$ 68 million from the Lee Shau Kee Founda-
tion. Over its three-year span, the project has trained over
a million farmers for more skilled, higher-paying jobs, trained
11,000 rural medical professionals in places where quality
care is scarce, and is constructing water projects in drought-
stricken areas.

71
Ronnie C. Chan
Building China’s intellectual capacity and restoring
its architectural heritage
Ronnie C. Chan inherited a set
of values from his late father – the
pursuit of excellence, the virtue
of self-reliance, and the spirit of
philanthropic giving. He leads by
example and has passed this set of
values to the next generation,
with the hope that they will con-
tinue this family legacy.
Mr. Chan received his MBA from
the University of Southern Califor-
nia in 1976. He co-founded the
family business, Morningside
Group in 1986 and became Chairman of Hang Lung Group
Limited in 1991. During his leadership, Hang Lung Group was
brought to new heights. In June 2011, Mr. Chan became the
first Asian to co-lead Asia Society, the influential global insti-
tution promoting ties between Asia and the United States. He
also holds numerous leadership and advisory positions in
renowned Hong Kong-based and international organizations.
Personal Dedication in Philanthropic Work
Mr. Chan puts a great deal of importance on personal in-
volvement in philanthropy and devotes much personal time
to non-profit work serving the community. This is driven
by the belief that the dedication and passion one invests in
philanthropy is just as important as the funds one is able to
commit for the success of a philanthropic project. In addition,
Mr. Chan strongly believes one should lead by example.
Young people need role models in philanthropy just as in any
other sector and Mr. Chan is frequently seen meeting with
students, holding discussions, and providing them with guid-
ance and nurturing opportunities. Alongside his active per-
sonal involvement in philanthropy, Mr. Chan also serves on an
executive level in a number of national and global founda-
tions. Most of which, such as the Asia Society, and the Better
Hong Kong Foundation aim to promote better understanding
between Asia and the West.
72
Enabling Access to Educational Opportunities
The Morningside Group, the Chan family investment com-
pany also supports a solid portfolio of philanthropic activities
through the Morningside Foundation. On education, Morn-
ingside has provided scholarships to enable over 5,000 eco-
nomically disadvantaged students to attend leading universi-
ties in Beijing and Shanghai since 1995. The Morningside
Music Bridge program was established in 1996 and annually
selects talented young classical musicians from China, Can-
ada, Japan, the Netherland, New Zealand, Poland, Taiwan,
Russia, and the United States to receive master classes at the
Mount Royal College Conservatory of Music during the sum-
mer. Graduates of the Morningside Music Bridge program
have won many prestigious international competitions such as
the Paganini Award and the Tchaikovsky Competition. In
2006, Morningside College at the Chinese University of Hong
Kong was established to inspire students to excel their educa-
tion in liberal arts; first cohort of students admitted in 2010.
To enhance natural science development in Chinese commu-
nity, Morningside has funded the construction and operation
of the Morningside Center of Mathematics at the Chinese
Academy of Sciences in Beijing, which has become one of the
premier mathematics research and teaching institutions in
China and plays a critical role in nurturing young talents in
mathematics. Morningside also funds the internationally
acclaimed International Congress of Chinese Mathematicians
hosted triennially in Greater China. At the congress, the
Morningside Medal of Mathematics is presented to encour-
age outstanding achievements in mathematical research.
Morningside College, Chinese University of Hong Kong
Conserving the Past for the Future
As the founding chairman of the Hong Kong based China
Heritage Fund, Mr. Chan is also passionate about heritage
conservation. The Fund’s mission is to preserve and restore
cultural relics throughout China that are a part of its important
heritage. It is keen to support projects which are self sustain-
able. The Fund regards conservation training, project manage-
ment and, where relevant, the development of appropriate
technology as key factors to a meaningful heritage preserva-
tion project.

The Fund’s inaugural project was the 2000 Reconstruction Northeast view
of the Garden of the Palace of Established Happiness in the in Garden, towards
Palace Museum, Beijing. The Garden was built by Emperor ­Palace Museum
Qianlong in 1740 and completely destroyed by fire in 1923. As North Gate 2000
the first reconstruction on such a large scale in the Forbidden
City since the 20th century, the Garden was painstakingly
rebuilt, using traditional tools, techniques and processes only.
This visionary collaboration between China Heritage Fund
and the Palace Museum was the first major privately funded
project inside the Forbidden City, and also the first time that
the Palace Museum has carried out a restoration in full collab-
oration with an organization from within or outside China.
The Garden was completed in 2005 and the Palace Museum Same view 2005
assumed complete managerial responsibilities in 2009. China
Heritage Fund’s second collaboration with the Palace Museum
is the restoration of the Hall of Rectitude complex, destroyed
by the same fire in 1923.

73
India
A Profile of Giving
– Leading Growth; Lagging Contributions. India is
one of the world’s most rapidly developing economies:
in 2006–2007, India experienced the fastest growth
of wealthy individuals in the world. Today, there are more
than 50 billionaires in India. However, charitable dona-
tions in India constitute only about 0.6 percent of the
­country’s GDP.
– Corporate Social Responsibility. Family groups run
much of corporate India: out of the top 40 business groups,
about 70% are family-controlled. Many such groups per-
ceive corporate social responsibility as a substitute for indi-
vidual and family philanthropy.
– Acceleration of Formalization. However, early indications
are that formalization of individual and family philanthropy
is accelerating. About 42% of our India-based respondents
indicated that they had formalized their philanthropic activi-
ties after 2000.
74
–M  ajor Sectors. Our India-based respondents selected
­education as the most popular sector (attracting 33% of
their contributions in 2010), followed by development
and poverty alleviation (attracting 16% of their contribu-
tions in 2010).
–D  omestic Geographical Focus. 93% of funds contributed
by our India-based respondents in 2010 were targeted
inside the country.
–S  ocial Entrepreneurship as a Positive Trend. Unlike
a number of other countries in Asia, a significant majority
(71%) of our India-based respondents viewed the emer-
gence of social entrepreneurship as the most significant
trend.
– Fund Raising Challenge. For 29% of our India-based
respondents, ‘fundraising and finding co-investors’ was the
most significant challenge. Dealing with ‘regulatory and tax
constraints’ was also highly ranked as a challenge and 17%
of respondents viewed it as the most significant challenge.
The Government and Giving Religious Distribution
– The Regulatory System. There are three types of
bodies through which one could engage in philanthropic
Hindu 82%
activity: societies, trusts and non-profit companies (known
as Section-25 companies). In addition to national legis­lation, Muslim 13%
some states may have specific acts governing the registra- Christian 2%
tion of societies or trusts.
Sikh 2%
– Government Funds and Bodies. The federal and provin-
cial governments are important players in the philanthropic others 2%
and social works sector and in addition to having their own
extensive social, educational, health and welfare programs,
are also sponsors of foundations (such as the National Foun-
dation for India) and social welfare funds (such as the
Labour Welfare Fund).
Basics
– Sector Based Targeting. The government uses differential
levels of tax deductions to steer contributions (for example, Population Millions 1,189
contributions to rural development programs are deductible
Population Growth Rate 1.3%
at 100%, while contributions to the scientific or educational
sectors are weighted at 125% and 175%, respectively). GDP Per Capita (USD) $3,400
– Incentives to Contribute to Government Funds. Avg. Annual GDP Growth/Capital 11.1%
In general, donors receive a 100% tax deduction for contri- (2000–2010)
butions to government funds.
Population Below Poverty Line 40%
Institutions and Giving (US$ 1.25/day)
– NGOs; Social Welfare Societies. India is estimated to Adult Literacy Rate 61%
have over 3.3 million NGOs or one for every 400 people. Avg. Life Expectancy (Years) 67
Despite or perhaps because of this mind-boggling diversity
of NGOs, our India-based respondents expressed a high Infant Mortality (per 1,000) 47.6
degree of distrust of the NGO sector as a whole.
– Associations and Supporting Networks. There are a
vast number of associations in India, including religious
associations, ethnic welfare groups, affiliates of interna-
tional associations and old boys’ networks that serve
as important conduits for collecting and distributing
contributions.

75
Bharti Foundation
Transformational Change in Education
“Part of the family DNA” is how Rakesh Bharti Mittal, co-
chairman of the Bharti Foundation, views philanthropy.
To him and his family it has always simply been a question
of how. “When we first started off it was a much more ­
giving oriented scene at the foundation,” he reflects.
Rakesh’s brother, Sunil Bharti Mittal, is Chairman and Group
CEO of Bharti Enterprises, India’s leading business group with
interests in telecom, agri business, financial services, retail and
manufacturing. Together, they co-chair the Bharti Foundation
which is a separate entity from their business enterprise, and
their philanthropy focuses on improving the education sector
in India.
Mr. Rakesh Bharti Mittal cites his father as an initial influ-
ence: “he had national pride, he believed he needed to help
those who are in distress.” It was this determination to
­emulate his father’s actions and the will to make a difference
that witnessed the Bharti Foundation’s transition from
­“writing checks” to “initiatives that were more sustainable
in nature.”
76
Progressively, the Mittals’ vision for their philanthropy solidi-
fied into a plan to build a scalable, sustainable organization
to effect transformational change by providing education to
underprivileged children in rural India. In addition, their phi-
lanthropy has become more professional, and is now headed
by a CEO hired externally. Today, the foundation is run with
the same accountability and transparency standards that have
distinguished the Mittals’ for-profit enterprises.
The Bharti Foundation focuses mainly on primary and sec­
ondary education, and runs schools in 250 villages across
India. The Foundation provides free education to more than
34,000 children with mid-day meals and plans to educate
100,000 children in the next 3 to 5 years. The Foundation cur-
rently employs over 1,300 teachers. The family believes that
the Foundation’s success will prove the effectiveness of their
model and result in others replicating it across other geo-
graphic areas. By creating a replicable platform for other orga-
nizations to emulate, the Mittal family hopes to have a trans-
formative effect on education. They have already received
positive feedback about their model, having attracted major
corporate sponsors including Google, who announced a
5 million dollar grant to the Bharti Foundation to expand
50 primary schools to accommodate upper primary students
as well.
Bharti Foundation Education Strategy
• Besides quality education, Bharti Foundation also imparts
vocational training that translates to in-demand job skills.
• Collaborate with government to build on existing infrastruc-
ture and leverage connections.
• Focus on progressive, under-funded aspects of education
that have been proven to have impact.
Progressive Educational Giving
In its approach to educational support, the Bharti Founda-
tion is going above and beyond the traditional approach of
scholarships and general institutional support.

In the realm of higher education, the Bharti Foundation

­supports technological education and research. At the Indian
Institute of Technology (IIT) Delhi campus, the foundation
funds the Bharti School of Telecommunications, Technology
and Management. The foundation has facilitated the con-
struction and maintenance of the Telecommunications Soft-
ware Laboratory, the Wireless Communications Laboratory,
and the Telecommunication Network Laboratory.

In its mission to improve education, the Bharti Foundation
is also collaborating with the government to help deliver more
effective educational services. Five secondary schools in the
state of Punjab were jointly established by the foundation
and the local government. Also, in Rajasthan the foundation
has adopted 49 government primary schools to improve the
quality of the education that the institution can offer.
Apart from the more traditional approaches to education
improvement, the Bharti Foundation has also attempted
a more progressive style to remove obstacles to attendance
at school. The foundation has introduced pre-primary classes
that not only provide early age learning opportunities for
Education supported by the Bharti Foundation
the young, but also frees up their older siblings to attend
­classes as they no longer have to babysit their younger
kin. The foundation counsels families in areas around its
school to encourage them to send their daughters to school.
In addition, every school has a separate toilet for girls. The
foundation has also attempted to increase the number of
female teachers while incorporating women’s themes in the
educational ­curriculum and introducing peer encouragement
programs.
“60% of the population of India lives in villages where edu­
cation is not up to the mark (300 million children in ages
of 6–16). We want to educate the children of today so they
become future assets to the nation.” Beyond this being an
incredible goal in itself, Mr. Rakesh Bharti Mittal hopes that
this gargantuan endeavour will inspire others to act and result
in a chain reaction that gives rise to widespread philanthropy,
both in India, and the rest of the world.

77
Indonesia
A Profile of Giving
– Religion and Giving. As a country with an overwhelming
Muslim majority, religious-based giving is a substantial
­factor. Zakat, or the Islamic system of tithes, provides for
a large amount of charitable giving. Minority faith and eth-
nic groups, such as Indonesians of Chinese origin, often
undertake giving inspired by their own traditions.
– Poverty Alleviation a Major Area of Giving. Develop-
ment and poverty alleviation attracted 19% of charitable
contributions from our Indonesia-based respondents in
2010, a reflection of the large percentage of impoverished
people in the country.
78
– I nternal Geographical Focus. In the year 2010, the
amount of funds distributed by our Indonesia-based respon-
dents inside the country stood at 72%.
–C  orporate Social Responsibility. Following the Asian
economic crisis, corporate social responsibility has signifi-
cantly increased in Indonesia. Corporate social responsibility
in Indonesia is executed via five main strategies – direct
involvement, establishment of a corporate foundation, part-
nerships, volunteerism and the multi-purpose foundation
model approach.
– I mportance of Values-Based Investing. 33% of our
Indonesia-based respondents identified investing in compa-
nies that place importance on social values as an important
trend in Indonesia, which reflects the involvement of corpo-
rations in philanthropic activities.
– Fund Raising Challenge. In terms of challenges, fundrais-
ing and finding co-investors was identified as the leading
concern by 33% of our Indonesia-based respondents,
whereas 22% of Indonesia-based respondents said that
strengthening governance and management was the lead-
ing challenge.
– Culture of Volunteerism. Social traditions from the coun-
try’s rural agrarian roots encourage volunteerism to help
those in need. Traditionally, members of a community help
each other in construction of houses and community assets
such as bridges and roads.
The Government and Giving
Religious Distribution
– Weak Tax Incentives for Organizations. Non-profit
organizations are generally subject to income tax, though
donations and grants are exempt. Tax deductions for chari- Muslim 86%
table contributions are currently available only for Islamic- Protestant 6%
obligated charitable giving. Additional tax incentives are
Roman Catholic 2%
accessible on an ad-hoc basis, for example in the case of
natural disasters. Hindu 2%
– The Regulation and Practice of Zakat. Indonesia has in others 2%
effect a law on the management of zakat that is adminis-
tered by the Ministry of Religion.  Under this law, both fed-
eral and semi-autonomous provincial zakat collection and
management agencies have been established. However, the
law and these agencies do not comprehensively regulate
this form of giving (see zakat Institutions below).  Moreover, Basics
the law, the regulator and the agencies are regularly criti- Population Millions 246
cized for lack of transparency and effectiveness.
Population Growth Rate 1.1%
Institutions and Giving GDP Per Capita (USD) $4,300
– Role of the Mass Media. Both print and broadcast media
Avg. Annual GDP Growth/Capital 13%
organizations engage in fundraising drives for charity. The
(2000–2010)
ability of media organizations to generate a large amount of
public awareness, and public perceptions of transparency, Population Below Poverty Line 21.34%
drive the success of these initiatives. (US$ 1.25/day)
– Zakat Institutions. The federally and provincially regulated Adult Literacy Rate 90.40%
system for zakat collection and management does not cover
Avg. Life Expectancy (Years) 71.33
all zakat contributions throughout Indonesia. Indeed, there
are three parallel zakat systems: the governmentally sanc- Infant Mortality (per 1,000) 28
tioned system, under which zakat is collected and managed
by federal or provincial agencies; the traditional Islamic sys-
tem, under which zakat is given to local religious institutions – Zakat Contributions. A substantial portion of zakat
or mosques and in many cases contributions deemed zakat ­contributions is applied to maintain religious institutions,
are made directly to social welfare organizations and deserv- mosques and madrassahs (religious schools).  Another
ing families; and the institutionalized Islamic system, under ­substantial portion is applied towards traditional charitable
which zakat is collected and managed by nationwide or causes such as giving of alms and disaster relief.  In addi-
regional religious institutions. tion, the agencies that collect and manage zakat (in partic-
ular federal and provincial agencies) are generally perceived
as self-serving and, in some cases, corrupt. While the
opportunity for deploying zakat contributions for more
strategic social, economic and environmental transforma-
tion is immense, there does not seem to be much move-
ment in this direction.

79
Putera Sampoerna Foundation
Enabling Indonesia’s Future Leaders
“… It is not just my parents who inspire me. Today I am
inspired every time I meet a young person who has taken
advantage of opportunities provided by the Putera
­Sampoerna Foundation.”
This is the same inspiration that drives Michelle Sampoerna,
daughter of Putera Sampoerna, one of Indonesia’s most
­successful entrepreneurs, to treat philanthropy as more than
just a pastime. To her, giving is a way of life.
Established in 2001 by Putera Sampoerna, the Putera Sam­
poerna Foundation (PSF) is an example of a contemporary
philanthropy that is taking full advantage of the new trends
and developments in giving. From its inception, it was set
up as a professional organization, with guidance and board
participation from the Sampoerna family, and operationally
run by dedicated, trained professionals. The foundation places
high value on transparency and accountability, and empha-
sizes cooperation with like-minded non-government and
­government organizations.
“The Ministry of Education reports that every year 1.5 million
teenagers are unable to continue their education. Economic
disadvantage is the main reason that they drop out of school.”
Addressing factual evidence, Ms. Sampoerna believes that
a four-pronged approach involving Education, Women’s
Empowerment, Job Creation & Entrepreneurship and Com-
passionate Relief would be the most prudent way to remedy
the situation.
Of the four issues it addresses, the PSF’s priority is educa-
tion, but its strategy is not limited to the traditional approach-
es of giving in this sector. It aims to improve the quality
of the Indonesian education system on all educational levels
through teacher training, institutional development and inter-
national student exchange. The foundation’s goal is not only
to educate students, but to cultivate new generations of lead-
ers who are both well-educated and equipped with values
that will make them effective and socially responsible business
and political leaders.
80
PSF Education Strategy
• Spread resources out among beneficiaries: students,
­institutions, teachers and administrators.
• Give across education levels – primary, secondary and
­tertiary – to enable talented and deserving students to
advance at every level.
• Support solutions to strengthen pedagogy, curriculum
development and teacher training across the country.
• Support solutions to build skills that are necessary for
strengthening the economic potential of the community.
Ms. Sampoerna also recognizes the importance of identi-
fying, and consequently, dealing with possible pitfalls: “A key
challenge has been that many people simply don’t have an
in-depth understanding of the challenges faced by Indonesia
today, particularly in a global context. Therefore we must
­constantly strive to increase public awareness about these
issues, and encourage people to contribute to improving their
society.”
While acknowledging that adaptability is key in achieving
­success, Ms. Sampoerna also reflected on the need for
grounding and a sense of pride in one’s own heritage or
­culture: “The most important lesson I learned was to never
forget where you come from.”
Emphasizing the need to incorporate philanthropy at every
stage, she explained: “The biggest philanthropic opportunity
open to all of us is simply to do something. No matter what
it is, the smallest gesture can make a huge difference to
someone’s life.”
The Sampoerna Foundation reaches its goals in education related giving through three principal avenues
Institutional Access
Sampoerna Academies: Private primary and
secondary education boarding schools tar-
geting high-performing students from
financially disadvantaged families.
Sampoerna School of Business: Undergrad-
uate programs for the education of future
business leaders. Programs are offered in
Accounting, Finance, Management and
Marketing.
ACCESS: Undergraduate-level exchange
program, for students to study at universi-
ties in other countries around the world.
Also provides a revenue stream for the
foundation.
Financial Access
Siswa Bangsa: Financial assistance to
disadvantaged students through
grants and no-interest loans.
Student Assistance: Scholarships
based on need and merit, for elemen-
tary to graduate level study, both
domestically and internationally.
Bait Al-Kamil: Collects religious tithes
and distributes them to disadvan-
taged Muslim children, through schol-
arships to Islamic schools with inter-
national-level curricula.
Capacity Development
Student Development Outreach: Provides individu-
als and educational institutions with training and
consulting, with the goal of improving perfor-
mance of staff, administration and teachers. Also
provides a revenue stream for the foundation.
Sampoerna School of Education: Offers Bachelor’s
Degrees for Mathematics and English Language
teaching.
Education Recovery Program: Provides emergency
supplies and infrastructure rebuilding assistance to
education institutions in areas hit by natural disas-
ters.
81
Japan
A Profile of Giving
– Underdevelopment of Giving. Japan is not well-known
for its philanthropy, and the philanthropic sector is consid-
ered underdeveloped as compared with other advanced
capitalist democracies. The average annual revenue for Jap-
anese non-profits is US$ 200,000, much lower than the
average in other OECD countries.
– Cultural Indicators. Because of the importance of mod-
esty in Japanese culture, much of the philanthropy in Japan
is anonymous. The act of giving in Japan is generally in the
context of social relationships, such as with co-workers and
friends, and used to pay back an obligation or to show grati-
tude. Buddhism is often a strong motivator for giving.
82
–N  ational Focus of Giving. While 76% of our Japan-based
respondents indicated that they directed their philanthropic
efforts to national-level causes, only 1% of those efforts
were on the local and community level.
–H  igh level of Professionalism. 77% of our Japan-based
respondents said that their foundations are being principally
managed by employed professionals. This is a reflection of
the maturity of the sector (42% of our respondents’ philan-
thropic initiatives were established in the 1980s).
– Science and Technology as an Area of Support: In con-
trast to respondents from other countries in Asia, contribu-
tions to science and technology made up a large portion of
giving in Japan: In 2010, 23% of the contributions made by
our Japan-based respondents went to this sector.
The Government and Giving Ethnic Distribution
– Lack of Robust Government Encouragement. Tax
exemptions are rarely given to non-profit organizations: as
of 2011, only 0.5% of registered non-profit organizations
were granted tax-exempt status. Also, many fundraising
techniques are not allowed, such as direct mail and prospect   Japanese 99%
research. There has been some softening of government
  Korean / Other 1%
policy toward NGOs though, as a result of natural disasters
and the country’s economic problems. The Government Tax
Commission revised the country’s tax system for donations
in 2010, making 50% of funds donated to non-profits
deductible. This has not had much effect on donations,
however, because of the difficulty in fundraising.
– Robust Social Services. Due to the high level of social Basics
­services provided by the government, there is minimal need
for NGOs to fill that role in society. Population Millions 126
– Sustained Overseas Development Assistance. Similarly, Population Growth Rate -0.28%
the Japanese government is a generous provider of overseas
development assistance to underdeveloped countries. As a GDP Per Capita (USD) $34,200
result, individuals, families and businesses feel less compul- Avg. Annual GDP Growth/Capital 1.12%
sion to make overseas donations. (2000–2010)
Population Below 50% of 15.7%
Institutions and Giving Average Income
– Corporate Giving. There is significant linkage between
Japanese corporations and philanthropic giving: half of Adult Literacy Rate 99%
all foundations are set up by or closely associated with cor- Avg. Life Expectancy (Years) 82.3
porations, and in 2004 more than 75% of all charitable
Infant Mortality (per 1,000) 2.8
donations came from corporate entities.
– Charitable Trusts. Unlike foundations, trusts are usually
formed by individuals but also occasionally by corporations
and local governments. Charitable trusts perform functions
similar to grant-making foundations, but are much smaller
in size and tend to not have any full time staff.

83
Hideo Okubo
Multi-Dimensional, Cross Border Educational Support
Hideo Okubo was born in Tokyo in 1954. At the age of 26,
with a law degree in hand, he started his first enterprise with
JPY1 million in capital and six employees including his wife
and himself.
In 1991, the company was renamed Forval Corporation
­(“Forval” means creating social value by bringing higher value
to customers). Thereafter, Mr. Okubo expanded and diversi-
fied the company’s commercial activities. After eight years in
operation, Forval went public: for its time, a Start Up-to-IPO
record among Japanese companies.
A few years ago, Mr. Okubo was inspired to examine the
­challenges facing Cambodia after a friend launched an initia-
tive to clear landmines in that war-torn country. The Pol Pot
regime (1976-1979) had decimated the intellectual class in
Cambodia. Although in recent years significant investment
had been made in education, the standards of education are
still very low.
84
In 2008, Mr. Okubo established The Cambodia International
Education Support Foundation (CIESF) for the purpose of
improving the quality of education in Cambodia. By focusing
on teachers and the larger educational infrastructure rather
than direct grants to students, the foundation’s goal is to have
an impact on the most number of beneficiaries possible. As
far as execution of this vision, he describes his approach as
including both “top-down activities in collaboration with the
government” as well as “bottom-up activities including local
NGOs”. Engaging stakeholders on both levels ensures feasibil-
ity of long-term operations in Cambodia, as well as effective-
ness and applicability with the aid of organizations that are
familiar with the local environment.
Hideo Okubo shares some lessons learnt on his experience
so far: “We cannot continue giving. Cambodians are too used
to receiving and need to realize that they need to stand on
their own two feet. External organizations should not stay
on site for long periods. By simply giving, while others just
receive, will not allow me to provide anyone with a bright
future. P­ hilanthropy has closed the door on simply giving and
we need to move towards a second stage of working together
with people to help them have an independent future. One
important aspect of philanthropic activity is that you need to
encourage people to become independent and self-reliant.
The issue we need to tackle going forward is to question our-
selves, question the relevance of our offering.”
The Cambodia International Education Support Foundation
Build Capacity Cross-Border Teacher Transfers
Strengthen Teacher Training Institutions
Drive Sustainability Promote Entrepreneurs
Promote Agricultural Technology
Leverage Alliances Build Network of Universities
Experienced science and mathematics Japanese teachers are sent to
Cambodia to strengthen local teaching skills.
Japanese professors are sent to teach at the Cambodian National
Institute of Education (NIE).
Cambodian instructors are invited to Japan to further strengthen peda-
gogical skills.
CIESF is working with The Royal University of Phnom Penh to establish
a School of Education.
CIESF is supporting graduate school courses in educational policy and
development.
Supported by Waseda University in Japan, business management
courses at Cambodian universities are supported.
An annual business plan competition is supported, with awards for
entrepreneurial activities.
Supported by Japanese universities, agricultural technology courses at
Cambodian universities are supported.
Japan
Cambodia
Thailand
85
Malaysia
A Profile of Giving
– Religious Giving. Malaysia is a Muslim-majority country,
and as part of their faith, Muslims are required to contribute
2.5% of their incomes to charitable causes. This institution
of giving (zakat) is well established in Malaysia.
– Minority Affiliation-Based Giving. Chinese and Indian
minority communities also engage in charitable giving, often
directed toward their own communities. In the case of the
Chinese population, substantial donations go to clan organi-
zations and cultural organizations. In the case of the Indian
population, substantial donations are made to guilds, reli-
gious organizations and youth organizations.
86
–E  ducation a Major Sector. 42% of the financial contribu-
tions of our Malaysia-based respondents were directed
towards the education sector during the year 2010.
– Corporate Social Responsibility. Corporate philanthropy
is occasionally motivated by tax incentives provided by the
government. Moreover, for most of the Malaysian compa-
nies, their CSR activities are aimed at enhancing long-run
financial performance by strengthening their reputation and
enhancing their business relationship with the (i) govern-
ment and (ii) their target market.
The Government and Giving Ethnic Distribution
– Low-Key Philanthropy. Many major philanthropists in
Malaysia, including a number who have previously been
listed on the Forbes list of leading Asian philanthropists, pre-
fer to maintain the confidentiality of their activities. Accord-  Malay 50%
ing to several sources, in addition to a personal and cultural  Chinese 24%
disposition to maintain confidentiality, a number of philan-
 Indigenous 11%
thropists have concerns as to the political or business impli-
cations of disclosure of their philanthropic activities.  Indian 7%
– Role of the Sultans. Malaysia is a federal constitutional  others 8%
monarchy, with the monarch’s role being rotated among the
nine Sultans of the Malay states.  As hereditary rulers and
formal heads of Islam in their state, the Sultans wield con-
siderable influence in shaping the direction and intensity of Religious Distribution
philanthropy in their states.
– Tax incentives for Religious Giving. For individual giving,   Muslim 60.40%
the government gives tax incentives for those who give  Confucianism, Taoism, other
according to Islamic law. The construction of religious traditional Chinese religions
buildings (mosques, churches and temples) is also tax- 2.6%
deductible.  other or unknow 1.5%
– Tax Incentives for Foreign Educational Institutions.  none 1%
The Malaysian government has prioritized education and  Buddhist 19.2%
technology development, and encourages foreign universi-
 Christian 9.1%
ties, R&D institutions and other educational institutions
 Hindu 1.2%
through 10- year tax exemption to set up campuses in des-
ignated education zones.

Institutions and Giving Basics

– Government and Non-Profit Education Collaboration.
Population Millions 29
To bolster the educational options in Malaysia, the govern-
ment provides funding to private non-profit educational Population Growth Rate 1.58%
institutions at all education levels.
GDP Per Capita (USD) $14,700
– Other Practical Factors in Corporate Giving. Apart from
tax breaks, corporations in Malaysia are engaging in philan- Avg. Annual GDP Growth/Capital 6.83%
thropy for public relations reasons: raising their profile in the (2000–2010)
community and establishing trust among those benefiting Population Below Poverty Line 0.54%
from charitable donations. (US$ 1.25/day)
– Collaborative Giving. Several of the major foundations in
Adult Literacy Rate 88.7%
Malaysia that were established and funded by a single fam-
ily have succeeded in diversifying their funding sources and Avg. Life Expectancy (Years) 73.8
now attract contributions from a range of individuals, fami-
Infant Mortality (per 1,000) 15
lies and companies.

87
The Pahang Royal Family
Community-Driven Environmental Transformation
Pahang is the largest state in peninsular Malaysia, covering
over 36,000 square kilometers. The state has substantial
­rainforest cover and extensive beaches and waterways. The
state’s traditional, but declining, industry (timber and wood
products, agriculture and fisheries), and newer, and now larg-
est industry (tourism), are in opposition to each other. The
­traditional industry has been depleting the state’s rain forests
and spoiling her pristine beaches and waters; the new
­industry celebrates these unique resources. But traditional
industries still employ the majority of the state’s population
of approximately 1.5 million.
The Sultan of Pahang, HRH Sultan Ahmad Shah, plays a
­central and multidimensional role in the state: the Sultan is
the formal head of state; he is the formal leader in the state
of the Islamic faith; through enterprises, his family is a sub-
stantial employer in the state; as the central source of tradi-
tional authority, he helps to shape public opinion; and he
and his family are deeply engaged in philanthropic causes.
Until recently, the royal family’s involvement in philan-
thropy and social causes has been extensive, but traditional.
Through a trust established by the Sultan, the family contrib-
utes ­regularly to educational institutions, provides scholar-
ships, donates to religious institutions and supports the indi-
gent, widows and orphans. Equally, if not more importantly,
88
the family acts as the leader for philanthropic and social
causes in the state. Their sponsorship and support of such
causes predictably attracts substantial individual and corpo-
rate contributions from across the state and country.
The Sultan’s youngest son, Prince Fahad Shah, a 17-year
old enrolled at Eton, has inspired the Sultan and his wife,
HRH Sultanah Kalsom, to embark on a bold new initiative. The
Sultan and Sultana have embraced their son’s passion for
the environment and for maintaining the natural beauty of
Pahang. In 2011, the family launched the Temenggong
­Initiative, dedicated to the community-driven environmental
uplift of Pahang.
The Temenggong Initiative Strategy
• Family drives environmental awareness and coordination
across the state.
• Family seeds community-based initiatives to upgrade the
environment and enhance education, skills and local income
opportunities.
• Community members are inducted to ensure sustainability
of the initiative.
• The family uses its unique position to marshal governmen-
tal, individual and corporate resources to a common goal.
Philanthropic Focus

Activity Insight Strategy

Information Hub Many NGOs, universities and government agen- The Initiative will take as a priority the more effective
cies have researched Pahang’s environment, but coordination and dissemination of research, including
these studies are poorly coordinated and dissemi- most critically among the population.
nated.

Coordinated Translation of research into policy and implemen- The Initiative will focus closely on effective design and
Implementation tation of policy is relatively weak. implementation of policy, and will play a critical role in
including local communities in the effort.

Urban Awareness Pahang’s population is unevenly distributed In the relatively well-off urban areas, environmental
among densely concentrated urban areas and awareness will be developed through schools and pub-
sparsely settled rural and forest areas. lic areas, with intense use of modern media.

Rural Awareness and The communities in rural and forest areas derive
Income Generation much of their income from logging, agriculture
and fishing, not from tourism.
These communities will be strongly supported to
develop local eco-tourism, home stays, artisanal prod-
ucts and herbs and health products. An important
component will be an “Adopt-a-Kampung” program to
link sponsors to specific communities.

Seed Funding and While substantial government and corporate The Initiative will provide seed funding and will catalyze
­Piloting funds and resources could be tapped, these are the environmental and community outreach program.
often poorly directed and disconnected from the
community.

The Temenggong Initiative
The aim of the Temenggong Initiative is to preserve and
up-lift Pahang’s environmental and natural resources, with
local communities constituting central stakeholders and
­beneficiaries. The Initiative will focus on a range of environ-
mental m ­ atters, including reclamation of habitats lost to log-
ging, farming and industry, responsible waste disposal,
­pollution control, protection of natural species and sustain-
able use of natural resources.
Launched in April 2011, the Temenggong Initiative has
been incorporated as a separate company, with seed funding
from the royal family, and a dedicated, multi-disciplinary
staff. According to Kamal Arifin, one of the principal profes-
sionals involved in the initiative: “For starters, we have
inducted about 40 community activists, who will lead our
community awareness and enablement program. We are
launching our Adopt-a-Kampung program with five commu-
nities, with a combined population of over 5,000 people. By
end of next year, we intend to be operational in three hun-
dred communities across Pahang.”

89
Philippines
A Profile of Giving
– Long History of Faith-linked Philanthropy. The concept
of organized philanthropy in the Philippines originates
from the Spanish occupation, when the Church directed the
wealthy to donate to charitable causes or obras pias. As
Asia’s largest Catholic majority country, religious values such
as charity are ingrained in society.
– Family Traditions. High net worth families in the Philip-
pines often have traditions of giving that go back for gener-
ations, with heads of the families setting the example for
younger members.
– Household Giving. Household giving across the Philip-
pines as a percentage of income was 1.8%, much of that
given in small amounts to religious institutions (an average
of about US$ 11 per household per year to churches).
– Volunteerism. The Philippines enjoys a high rate of volun-
teerism: 80% of individuals and organizations engage in
some kind of volunteer, social or community work.
– Education a Major Sector. Our Philippines-based respon-
dents reported education as the sector they donate the
90
most to, with all of the interviewees citing the sector as
one of the main focuses of their philanthropic projects. In
2010, 17% of contributions made by our Philippines-based
respondents went to the education sector.
–D  omestic Problems Drawing Funds. According to our
Philippines-based respondents, 66% of their financial con-
tributions were directed to causes inside the country during
the year 2010. A main reason for this is the need to address
internal issues: poverty, access to decent health care and
other social problems.
– Potential for Social Entrepreneurship. 46% of our
­Philippines-based respondents view the emergence of social
entrepreneurship as the most significant current trend.
– Fund Raising Challenge. 46% of our Philippines-based
respondents said that fundraising and finding co-investors is
the most significant challenge in philanthropy. This coincides
with the central position that third-party fundraising has in
their sources of funding: 30% of respondents replied that it
was a major source.
The Government and Giving Ethnic Distribution
– Weak Tax Incentives for Individuals. Tax breaks are
given to civil society organizations for income taxes, foreign
  Tagalog 28.1%
donations and donor’s (gift) tax. Corporations also enjoy
substantial tax incentives to donate. However, in many cases   Cebuano 13.1%
individual donors do not enjoy income tax breaks for dona-   Ilocano 9%
tions with pure-compensation income, so there is little   Bisaya/Binisaya 7.6%
incentive for them to give.  Hiligaynon/Ilonggo 19.2%
  Bilkol 6%
Institutions and Giving   Waray 3.4%
– Grant Dependency. The majority of NGOs in the Philip-   other 25.3%
pines are dependent on grant funds, especially since flows
of government and international aid have been slowing.
NGOs have had to find other sources of income, such as
Basics
family philanthropy and public fundraising.
– Constitutional Recognition. The 1987 Constitution rec- Population Millions 102
ognizes NGOs and non-profit organizations as extensions of
Population Growth Rate 1.9%
“people’s power”, and designates their right to assist people
in participating in official and community decision-making. GDP Per Capita (USD) $3,500
– Accreditation Body. The Philippine Council for NGO Certi- Avg. Annual GDP Growth/Capital 7.09%
fication (PCNC) is a partnership between national NGO net- (2000–2010)
works, the Department of Finance and the Bureau of Inter-
nal Revenue. The PCNC reviews NGO credentials as a Population Below Poverty Line 22.62%
measure for determining granting of official “donee” status (US$ 1.25/day)
and tax incentives. Other government bodies have their own Adult Literacy Rate 92.6%
NGO accreditation procedures, such as the Department of Avg. Life Expectancy (Years) 71.66
Health, Department of Social Welfare and Development,
Department of Environment and Natural Resources and the Infant Mortality (per 1,000) 19.34
Department of Agriculture.

91
AY Foundation
A Founder’s Vision Carried Forward
Alfonso T. Yuchengco, who started the Bayanihan Founda-
tion in 1970 (later renamed the AY Foundation), is the head
of Yuchengco Group of Companies and former Philippines
Ambassador to China, Japan and the United Nations. The
foundation was originally created as an educational fund to
support the children of employees of the family business, but
gradually expanded to include impoverished populations in
the Philippines and to other core causes such as health and
poverty alleviation. The foundation’s board meets three times
a year to evaluate current and prospective projects; however,
the foundation does not necessarily elect to choose a new
project every session or even every year.
With a clear vision that the family should play a role in philan-
thropy, Ambassador Yuchengco actively involves the 2nd
and 3rd generations in the foundation. Though not all family
members are involved on a daily basis, one of his granddaugh-
ters is working full time for the organization. A key success of
Ambassador Yuchengco in involving his family has been his
ability to share his philanthropic vision with the younger gen-
erations, and therefore create a legacy of values for the fam-
ily. As a result, the foundation continues to adhere to the giv-
ing strategy as originally defined by Ambassador Yuchengco,
with little variation in the philanthropy’s overall approach and
goals. The family’s involvement in the AY Foundation has
been institutionalized through the foundation board on which
members sit. However, not to compromise on its ability to
92
make the best informed decisions, Ambassador Yuchengco
also invited representatives of the family business and external
qualified persons also sit on the board alongside the family.
Because all of the funding for the AY Foundation comes
from the family’s businesses, many aspects of the founda-
tion’s giving are informed by the business and its activities and
employees are also encouraged to participate in the activities
of the foundation. The original intent of the organization –
to provide support to employees’ family members – is still car-
ried on through an in-house educational scholarship that is
available based on merit and financial need. The foundation
also encourages company employees to participate in charita-
ble causes such as disaster relief as a way to spread the cul-
ture of giving to the business side of the family endeavors.
The close relationship between the business and family
­foundation serves to sustain the foundation. A steady stream
of support (1% per year of taxable income) from the family
companies reflects Ambassador Yuchengco’s vision of “social
return on investment”: private investment for the public good,
resulting in health, economic, educational, housing and
­community development.
AY Foundation Poverty Alleviation Strategy
• Create awards to recognize and incentivize those who
spend their time and energy to work with the poor.
• Develop a new generation of community leaders through
training programs and volunteer activities.
• Position the family foundation and the family business to
have close ties, creating crossover benefits.

Blessed Theresa of Calcutta Award

In partnership with the Manila chapter of Junior Chamber
International (JCI), the AY Foundation co-created the award to
publicly recognize individuals who dedicate their lives to serv-
ing the impoverished. Half of the award money goes to the
project that the recipient supports, in order to reinforce its
sustainability and increase the potential impact.

The National Discipline Awards

The foundation gives awards to high school students who
exhibit self-sacrifice, leadership and good character. This
encourages new leadership and thinking in solving the prob-
lems that cause poverty in society. It is also a vehicle to attract
talented young minds to work for the family business and
foundation.

Championing the Youth for Community Leadership

(CYCLE) Ambassador Yuchengco and Mother Teresa
Through leadership training and volunteer work, the founda-
tion develops young community leaders in poor communities
across the Philippines.

93
Consuelo “Chito” Madrigal Foundation
Maintaining High Standards in Philanthropy
The late Doña Consuelo “Chito” Madrigal was the fourth
daughter and fifth child of seven children of Doña Susana
Paterno Madrigal and the Philippine industrialist Don Vicente
Madrigal, patriarch of the Madrigal Family, a great entrepre-
neur who successfully carried out businesses spanning from
coal, oil and sugar trade to shipping and real estate to bank-
ing and manufacturing, among others.
Doña Consuelo
“Chito” Madrigal
With the clear vision to improve the quality of life of dis-
tressed individuals and families through strategic and holistic
approaches, addressing basic human needs, Doña Chito Mad-
rigal founded her philanthropic foundation in 1997.
94
Moved by her sincere desire to undertake an integrated
human development mainly through education with the spirit
of enterprise, her magnanimity has spread throughout the
various areas in the Philippines, namely: Bicol Region, the
Tagalog Region, NCR (National Capital Region) specifically the
Payatas community, and extending to the Visayas i.e. to
include Biliran, Leyte.
In these select poor communities, she has touched thousands
of lives of needy and hungry children and families mainly
through scholarship, nutrition, skills training, livelihood and
housing programs.
Aimed at maintaining high standards in its social responsibil-
ity, Consuelo “Chito” Madrigal Foundation, Inc (CCMF) seeks
strict selection criteria and implementing guidelines among its
beneficiaries and collaborating organizations.
With no “dole-out” mentality as clearly indicated by its
founder, CCMF requires to foster that participative spirit
among the social players, including the beneficiaries them-
selves via its “pay-back schemes” These could be in the form
of either minimal financial contribution, or their “sweat
equity” i.e. rendering some designated hours of work.
Through these various schemes, the foundation hopes to
uphold as its founder would say: “the human dignity” of each
one, promoting that “sense of ownership” and true, sustain-
able human development. Doña “Chito” Madrigal entrusted
her nieces Susana Madrigal and Gizela Gonzalez to ensure
that her legacy is carried out through the foundation.
Setting Standards
To uphold performance standards throughout the projects, Mission
the foundation uses the following measures:
• Reassessment of actual needs through research & To help raise the quality of life of
interviews
• Review of program implementing plan and guidelines
Filipino families with particular
vs approved budgets emphasis on providing livable
• Annual audits
• Dialogues with implementing organizations, environments, addressing basic
beneficiaries, etc
• Gathering of notes of experience and best practices
needs, creating opportunities for
Through these measures, the foundation ensures criteria of advancement and productivity.
credibility and good governance. Likewise, through these
measures recipients have a long-term strategy for success.

The Madrigal Building at Pleasant Hill has become a resounding

word that the poor would not get lost if they wish to have a quick and
purposive response to their concerns on welfare

95
The Ramon Aboitiz Foundation
Professionalized, Collaborative Philanthropy Sustained
Across the Generations
Representing five generations of family philanthropic tradi-
tion, the current generation of the Aboitiz family has a natural
understanding of social responsibility that comes from such a
long history of giving. This responsibility to the community in
which the family prospered is a value that is deeply imprinted
by the older generations to the younger ones: “never forget
the poor and always remember our roots.” The example
established by preceding generations has become part of the
family heritage, and reinforces the continuation of philan-
thropy across the generations.
The family foundation is named the Ramon Aboitiz Foun­
dation, Inc. (RAFI) in honor of the patriarch who began the
family t­ radition of large-scale giving. Established in 1966, the
­foundation’s mission as an architect of change is elevating
lives through comprehensive approach that champions best
practices in community development. To meet these goals,
the foundation seeks to assist disadvantaged members of
the community and develop robust participation in NGOs and
local governments, with the assistance of other charitable
organizations, government, likeminded companies and
­individuals.
96
A high level of professionalism is a major factor in maintain-
ing program effectiveness, and in converting funding into
effective levels of assistance for the end recipients. Virtually all
of the ongoing programs supported by the foundation are
headed by separate professional management executives,
hired from outside the family. A publically-available detailed
report is released annually, including an independent auditor’s
report with breakdowns of all activities and expenditures.
The Ramon Aboitiz Foundation, Inc. attributes for community
leadership development:
• Collaboration with organizations that can contribute
­specialized knowledge and expertise, making the process of
change inclusive;
• Holistic conceptualized programs that look into multi-issues
and comprehensive solutions;
• Be a role model by utilizing best practices and exploring
innovative solutions.
RAFI engagements are in integrated development, educa-
tion, microfinance and entrepreneurship, culture and heritage
and leadership and citizenship. In integrated development,
the foundation enhances the quality of life of urban and rural
communities through good governance practices, access to
health services and protection of the environment.

To create a better foundation for education and learning

­environment, RAFI rehabilitates infrastructure and improve
the education system. RAFI has assisted women to become
entrepreneurs to gain stable financial support to their families.
The foundation’s culture and heritage program helps commu-
nities understand and appreciate their identity.
The Ramon Aboitiz Foundation supporting education
The leadership and citizenship programs seek to nurture
future leaders and influencers by sponsoring youth leader-
ship programs, like the Young Minds Academy and the Kool
Adventure Camp, that inspire young people to share ideas
and get involved in their communities. It also creates fora
for members of the community to discuss local issues and
enhance citizen participation in discussions on current events,
such as the global financial crisis, national and local politics
and environmental issues. Speaking events featuring govern-
ment officials, private company executives, academics
and journalists offer a chance for raising citizen awareness
and ­discussion.

97
Singapore

A Profile of Giving The Government and Giving

– Family to Institutional. Traditionally, philanthropy was – I nward Focus. Tax incentives strongly favor charities: from
individual and family sourced, but institutional and corpo- 1 January 2011 to 31 December 2015, donations to qualify-
rate charity is becoming more commonplace. Today, 35% of ing organizations (Institutions of a Public Character – IPC)
donations are from individual sources and 65% are from receive a 2.5x tax exemption. Registered charities do not pay
corporations. taxes regardless of whether their spending is directed within
– Doubling of Giving. As the country with the highest Singapore or internationally.
­concentration of millionaires in the world, Singapore’s – Steering Through Match Funding. Government match-
strong economy provides context for the doubling of total funding programs (e.g., for universities) further channels giv-
charitable donations from 2001-2009: US$ 308 million ing into targeted sectors.
to US$ 556 million.
– Catch Up Needed. Charitable donation amounts are still Population in public housing 3+ million (80%)
relatively low: 0.3% of GDP in Singapore, vs. 2.2% of GDP Students in public schools 520,000
in the US.
– Generational Shift. There is a generational shift under- Public medical centers 14
way: the older generation was generally content to make Amount of medical costs subsidized 50–80% 
donations; the younger generation is becoming involved
through volunteering and management of charity organi­
zations.
– Rise of Volunteerism. Volunteer participation increased
substantially from 9.3% in 2000 to 23.3% in 2010.

98
Institutions and Giving Religious Distribution
– Regulator. The Commissioner of Charities (CoC), under
the Ministry of Youth Development, Community, and Sports,   Buddhist 43.37%
regulates the philanthropic sector. CoC is slow to grant   Muslim 15.2%
licenses, especially for charities looking to work overseas.  Non-religious/
– Association. The National Volunteer and Philanthropy Cen- other 15.82%
ter (NVPC) is the main facilitating organization for Singapore   Christian 14.9%
charities; it matches donations with causes, facilitates volun-   Taoist 8.67%
teer leadership and issues government start-up grants.
  Hindu 4.0%
NVPC uniquely combines philanthropy and volunteerism.
– Registered Charities. Religious charities dominate in num-
ber but not necessarily in funding.
Donations, by cause
– Online Giving. SG Gives is an Internet portal run by NVPC,
which facilitates direct online donations to non-profit orga-
  Social Services 33.49%
nizations.
  Education 36.69%
 Health 21.6%
  Self-Help 4.23%
  Arts, Heritage 2.8%
  Sports 0.7%

Charitable Organization Types

  Religious 57%
 Social Services 17%
  Health 7%
  Education 5%
  Arts, Heritages 5%
  Community 4%
  Sports 1%
  Others 5%

Basics
Population Millions 4.7
Population Growth Rate < 1%
GDP Per Capita (USD) $57,200
Avg. Annual GDP Growth/Capital 5.7%
(2000–2010)
Adult Literacy Rate 92.5%
Avg. Life Expectancy (Years) 82
Infant Mortality (per 1,000) 2.3

99
The Lien Foundation
Radical Philanthropy: Thinking – Acting – Scaling
“Those to whom much is given, much is expected.”
Luke 12.48
This is the single most influential belief that guides Margaret
Lien, wife of the late Dr. Lien, the man behind the Lien founda-
tion. “For my husband, it was always in the back of his mind
that he had to give back to society.” It is this idea of philan-
thropy being synonymous with living that drove the Lien foun-
dation to help in the magnitude that it has.
Lien Ying Chow, was born in 1906 in a village in Guangdong
Province, China. Orphaned at the age of 14 and deprived of a
formal education, he traveled to Singapore and secured work as
a shipping clerk. At the age of 21, he set up his first enterprise,
and over the next ten years built up a highly successful trade
business. In 1949, he established the Overseas Union Bank,
which grew to become one of Singapore’s largest banks.
Having achieved immense success despite coming from humble
beginnings, Dr. Lien recognized the struggle faced by a vast
majority of people. To address this, he felt that “people needed
to be given opportunities - either monetary or otherwise (edu-
cational) - that would give them the initial chance.”
100
In 1955, Dr. Lien co-founded the Nanyang University to address
the lack of options ethnic Chinese students had for tertiary edu-
cation at the time. The institution still exists today as the Nan-
yang Technological University (NTU). In 1980 he donated almost
half of his wealth to set up the Lien Foundation, which currently
gives mostly to education, health, the environment and elder
care. Mrs. Lien carried on the role of foundation chair when Dr.
Lien passed away in 2004, a position she held until 2009.
The foundation still contributes a large amount of support to
NTU, both to their School of Public Administration and to the
Environmental Endeavour program, which focuses on clean
water, sanitation and environmental education in impoverished
areas in China, Cambodia, and Vietnam. Recently the founda-
tion’s strategy has evolved to cover three major areas where it
plans to have an Asia-wide impact: education for children in dis-
advantaged communities; water; and elder care.
The Lien Foundation Sector Strategy
• Focus on social service gaps in selected sectors and selected
countries.
• Establish and fund specialized entities with sector-specific
mandates.
• Develop a network of contributors: government; universities;
MNCs; and regional companies.
 Education
Think Research program with three univer­
sities on best practices in supporting
children with development challenges
in disadvantaged communities.
Environment
Research program with the Nanyang Techno-
logical University on technologies and best
practices in improving water and sanitation ser-
vices in marginal communities.
Eldercare
Sponsorship of the first world
ranking on Quality of Death,
conducted by Economist Intel-
ligence Unit.

Act Teacher training program to empower The Lien Foundation through its subsidiary Happy Coffins is part of a
pre-school teachers to guide children Lien Aid has invested in water and sanitation foundation sponsored initia-
with development challenges. projects in China, Vietnam, Cambodia and tive to help people deal posi-
Indonesia. tively with death.

Scale The “Mission: I’m Possible” (MIP)
­Program works with a hospital group
and communities to deliver effective
education for children with develop-
ment challenges. MIP includes teacher
training, delivery support and custom-
ized education programs for each
child.
The WASH initiative in Cambodia (which The foundation is working
includes USAID support) is helping build a with Motorola to develop a
­sanitation supply chain in rural communities. Nursing Care Service Delivery
It includes developing local masons and System for nursing homes
­manufacturers and empowering women as across Singapore.
sales agents.

The Think – Act – Scale Model
The evolving Lien Foundation model involves thinking
(establishing a thought leadership position in a given field,
including by collaboration with academic institutions), act-
ing (including establishing pilots in collaboration with gov-
ernmental and other institutions) and scaling (designing ini-
tiatives as separate entities, with specific mandates and
professionalized boards, to enable other contributors to
come in).
Eldercare Explored
The Lien Foundation’s eldercare projects address a range of
issues regarding care for the elderly. Through its Integrated
Care in Place program, it offers personalized services such as
monitoring for degenerative diseases and medical manage-
ment. Project Ingot supports the improvement of elderly
care facility processes by introducing the latest IT, database
and other types of technology into the administration.
The foundation also addresses quality-of-life issues for
elderly people suffering from life-limiting diseases. The Lien
Centre for Palliative Care partners with the National Univer-
sity of ­Singapore Medical School, the National Cancer Cen-
tre Singapore and the government-run Singapore Health
Services to deliver care that relieves suffering and increases
the quality of life for affected elderly. The first of its kind in
Singapore, the center serves to raise awareness about the
importance of end-of-life care, and to train medical staff on
methods to ease suffering and deal with the side effects of
diseases and harsh treatments.
One concept that the Lien Foundation seeks to make a differ-
ence with is “quality of death,” which supports efforts to
make people more comfortable with the thought of death. To
this effect, a unique project that the foundation is supporting
is called Happy Coffins, which seeks to turn the image of the
coffin from a symbol of fear and grief into an expression of
art and appreciation of life. The foundation commissioned art-
ists and children to design coffins for residents of a hospice,
based on the lives and interests of those residents.
“I always remember all these old ladies sitting outside his
office, and he would just ask, OK how much you want?” Mrs.
Lien fondly shares. With this spirit of generosity combined
with a highly professional approach, the Lien family legacy
carries on for generations to come.

101
Taiwan
A Profile of Giving
– Selective Giving Traditions. The general approach in
­Taiwan towards philanthropy appears to be selective; many
are inclined toward giving to relatives or people within
their social circle. Also, many Taiwanese people tend to
engage in charitable activities for religious purposes
and benefits.
– Giving to Benefit Children and Youth. Our Taiwan-
based respondents reported that 20% of their 2010 contri-
butions went toward benefitting children and youth pro-
grams, much more than in other Asian countries.
– Geographical Focus. A majority of philanthropic giving
among respondents is directed towards continuing social
and development needs within Taiwan.
102
The Government and Giving
–E  ffect of Political Changes. Our Taiwan-based respon-
dents said that 70% of their philanthropic initiatives were
established in the 1980s and after. This corresponds with
the end of martial law in 1987, which led to a liberalization
of Taiwanese government policy, and an expansion of civil
society organizations.
– Shifts Due to Policy Development. A major agent of
change in the Taiwanese philanthropic landscape is attrib-
uted to the commencement of a ‘community-oriented wel-
fare approach’ to privatize social welfare services through
the non-profit sector. The government has also been out-
sourcing some social welfare service responsibilities to more
eligible and qualified non-profit organizations/foundations.
–R  elatively Weak Tax Incentives. The government does
not actively promote charitable activities through tax incen-
tives. As of now, corporate donations to non-profits are tax
exemptible up to 30% of the total annual business revenue,
while the tax exemption for individual donations is 10%.
Institutions and Giving Ethnic Distribution (by origin)
– Organization of Information. A leading Taiwanese
­foundation, the Himalaya Foundation, has contributed to
the organization of information about philanthropy in
­Taiwan, including by provision of a database of philanthro-  Taiwanese (including
pies, development of research reports and establishment Hakka) 84%
of a center to assist non-profits with Information Tech­  Mainland Chinese 14%
nology. As such, an initial platform for collaboration has
 Indigenous 2%
been established in Taiwan, which needs to be built upon by
other foundations.
– Religious Philanthropies. Religious, especially Buddhist,
philanthropies in Taiwan are very large and attract not
only unsystematic, small donations from individuals but
larger, more systematic grants from families and businesses.
Basics
Tzu Chi Foundation, a Taiwanese Buddhist charity, works in
the areas of disaster relief, education, healthcare, charity Population Millions 23.2
and social welfare, environmental protection and the spread
Population Growth Rate <1%
of humanistic culture. Tzu Chi has more regular donors
(10 million, mostly Buddhist), active volunteers (two million) GDP Per Capital (USD) US$ 35,800
and operations in more countries (close to 400 offices in Avg. Annual GDP Growth/Capita 4.6%
48 countries) than any other charity based in greater China. (2000–2010)
In 2008, it raised US$ 314 million. Tzu Chi is now involved in
disaster relief operations in all the six major continents. Adult Literacy Rate 91.6%
Avg. Life Expectancy (Years) 78.3
Infant Mortality (per 1,000) 5.2

103
Cathay Charity Foundation
Assistance at the Margins of Society
Founded by the late Tsai Wan Lin, the Cathay Charity Foun-
dation has a focus on health and education, as well as general
social assistance programs. Dr. Fredrick Chien, former
­Taiwanese Minister of Foreign Affairs, presently chairs the
foundation.
The founder, Mr. Tsai, grew up in a poor farmer’s family that
cultivated and sold vegetables and soybeans. He got into the
insurance business with his brother, and gradually built the
Cathay Life Insurance Company into the largest insurance firm
in Taiwan. With the incorporation of banking and venture
capital functions, Cathay Financial Holdings is now the largest
financial holding company in Taiwan. Despite his personal
struggle to succeed, Mr. Tsai believed that wealth is ultimately
provided by society, and that giving back to the least advan-
taged members of society is an obligation.
Dr. Fredrick Chien surrounded by children at a youth camp of the Cathay Charity Foundation
104
As with many family philanthropies in Taiwan, there is a
close link between the founder’s for-profit company and the
foundation. Employees of companies under Cathay Financial
Holdings are encouraged to contribute to the foundation’s
charitable activities through volunteerism. Employees are
offered the opportunity to volunteer in assisting disadvan-
taged Taiwanese families, while still receiving full pay. Apart
from impoverished households, the program also places
employee volunteers with elderly, single-parent and physically
or mentally handicapped individuals and families.
Another area of focus for the Cathay Charity Foundation is
to help recent immigrants to Taiwan adjust to society, through
programs like language training and helping their children
with after class homework.
Cathay Charity Foundation’s New Immigrant
Caring Program Strategy
• Focus in areas where there is a substantial need not being
addressed.
• Work in collaboration with local NGOs and educational
institutions to leverage their experience and knowledge.
• Consider ways to assist both immigrants and their children.
• Bring together new immigrants with their neighbors
through weekend bazaars held in neighborhood parks.
New Immigrant Caring Program
There are close to 370,000 female immigrants from South-
east Asia and other regions that have migrated to Taiwan and
married into the local population. These immigrants, typically
unable to speak any Chinese language, form an invisible
underclass in Taiwan. Because of their difficulty to integrate,
they are unable to make a meaningful financial contribution
to their families. And their children, unsupported by home
tutoring, tend to be left behind in the highly competitive
­Taiwanese school system.
The Cathay Charity Foundation has established the New
Immigrant Caring Program in order to support these new
immigrants and their families in a comprehensive, holistic
manner.
To leverage expertise and outreach, the foundation works
with multiple partners on this program, including:
• Good Shepherd Welfare Service
• The World Peace Foundation
• The Early Childhood Education Department of Chaiyi
­University
• Teachers at Guang Fu Elementary School
Many of the immigrants have little or no prior exposure
to local society, language or culture. The program offers
­assistance in the form of Chinese language tutoring and
­role-plays to prepare them for the social interactions they
will have with other members of society.
Another aspect of the program encourages exchange
between immigrant mothers and their children’s teachers,
through question and answer sessions and information
­sessions about how to best reinforce in-class learning with
at-home reading and educational games.
Through the Cathay volunteerism program, employees
of the different Cathay financial institutions are encouraged
to link up with families with immigrant spouses in order to
provide regular support in acculturation. These volunteers are
also able to assist the children of immigrant mothers with
their schooling.
For immigrant mothers in low-income, rural regions, the
­foundation also hosts a book donation drive to supply their
children with learning materials and to close the knowledge
gap between rural and urban areas.
105
Chang Yung-Fa Foundation
Sustainable Philanthropy to Promote Arts and Culture
As founder and group chairman of the Evergreen Group in
Taiwan, Dr. Chang Yung-Fa built his company into one of the
largest cargo container shipping firms in the world (Evergreen
Line). The company has since expanded to other forms of
transportation, such as passenger airlines (EVA Air) and cargo
aviation (Evergreen Air Cargo Services Corporation).
Dr. Chang is deeply involved in philanthropic giving through
the foundation he established in 1985, the Chang Yung-Fa
Foundation. He believes that success is made possible by com-
munities, individuals and institutions that have assisted people
in need, and that “entrepreneurs should give back to society
when they are successful; they cannot forget their roots,
which is society.” Dr. Chang is personally involved with the
foundation’s activities on a day-to-day basis, and receives a
daily report on the status of the foundation’s philanthropic
projects.
106
The Chang Yung-Fa Foundation supports two main catego-
ries of causes: charity-related, and arts and culture. Charitable
­giving includes education and disaster relief. Education sup-
port comes through scholarships to young people desiring an
education but who cannot afford schooling and student living
costs. These scholarships are given out to underprivileged
­students in Taiwan, but also in the US, Southeast Asia and
mainland China.
The foundation supports disaster relief through funding
of relief workers and reconstruction donations for stricken
individuals and schools globally.
In the realm of arts and culture, the foundation has estab-
lished the Chang Yung-Fa Museum and the Evergreen Mari-
time Museum. The foundation also supports the Evergreen
Symphony Orchestra, which was established in 2002 and
seeks to preserve Taiwanese music and contribute to the
musical awareness of the general public.
Additionally, according to Dr. Chang’s personal principles,
the foundation also publishes a magazine called “Morals,”
which provides ethical advice for everyday situations. The
publication is given free to schools, individuals and organiza-
tions across Taiwan, as well as to elsewhere in Asia.
Evergreen Symphony Orchestra
The Chang Yung-Fa Foundation supported young musi-
cians by sending them to superior music schools and training
them to a professional level. The performances of Evergreen
Symphony Orchestra generate funds that revert to the orga­
nization to support the charity activities. Summer camps,
taught by those musicians trained by the program, host music
training programs for the public, which also generate income
for the orchestra and other foundation activities.

Evergreen Maritime Museum

The foundation established the Evergreen Maritime Museum
to preserve and raise awareness about the history and artistry
of nautical culture in Taiwan. The museum brings in revenue
from admissions and shop sales, which goes to fund its
upkeep and charitable aspects of the foundation’s giving.

107
Thailand
A Profile of Giving
– Religious Inspiration. The general philosophy of giving
in Thailand is deeply rooted in Buddhism, which encourages
good deeds. Through contact with religious organizations,
children learn about the importance of giving and volun-
teerism at an early age.
– Royal Influence. Thailand is a constitutional monarchy and
the monarch is highly revered by the people. The substantial
influence of the monarchy drives Thai people to make dona-
tions to social causes sponsored or supported by the royal
family.
– Growing Wealth Across the Board. There are a growing
number of high net worth individuals based in Thailand who
have been seeing their fortunes continue to grow even
through the global economic crisis. There has also been a
growing Thai middle-class since a modernization period in
the 1990s.
108
–E  arly Establishment of Organized Philanthropy.
According to our Thailand-based respondents, 42% of their
philanthropic initiatives were established in the 1960s.
– F amily Tradition. 50% of our Thailand-based respondents
cited family tradition as the major source of inspiration for
their philanthropic activity.
–C  orporate Social Responsibility. Many companies in
Thailand have included corporate social responsibility as
part of their organizational strategy, which includes dona-
tions to charity. Some companies see their giving as an
extension of their public relations activities, and widely pub-
licize their charitable work, whereas others have grant-mak-
ing bodies attached to their brand.
– Disaster Relief and Youth as Major Sectors. In 2010,
our Thailand-based respondents gave an average of 21%
of their contributions to disaster relief, which may have
resulted from floods and other natural disasters in the
region. 19% of contributions were for youth activities,
a very high percentage in the region.
The Government and Giving Ethnic Distribution
– Tax Exemptions. The Ministry of Finance grants tax
exemption to ‘third sector’ organizations. To qualify for tax
exempt status an organization must be registered with
the appropriate government organization for at least three
years, and have spent no more than 25% of its budget   Thai 75%
on overhead for the two years prior. Individuals are allowed   Chinese 14%
to deduct up to 10% of their taxable income for contribu-   other 11%
tions to tax-exempt foundations and associations.

Institutions and Giving

– Strong NGO Sector. Both national and international NGOs
are well represented in Thailand, and some local NGOs
enjoy particularly high recognition due to media coverage Religious Distribution
and well-known social programs. Thailand is also the Asia
regional hub for many international NGOs.
– Temples as Alternate Giving Centers. Due to confusion
about NGOs and their relation to the government and per-   Buddhist 94.6%
ceptions about them being untrustworthy, some Thais pre-
  Muslim 4.6%
fer to contribute to temples because they represent a trust-
  Christian 0.7%
worthy and respectable force in Thai society.
  other 0.1%

Basics
Population Millions 67
Population Growth Rate <1%
GDP Per Capita (USD) US$ 8,700
Avg. Annual GDP Growth/Capital 8.18%
(2000–2010)
Population Below Poverty Line 0.40%
(US$ 1.25/day)
Adult Literacy Rate 92.60%
Avg. Life Expectancy (Years) 73.6
Infant Mortality (per 1,000) 16.4

109
Chearavanont Family
Planting the Seeds of Positivity
When Tipaporn Chearavanont was a child, her father
Dhanin used to take her along to the fields in Thailand, where
his agriculture business was based. There she would meet
field workers who lived in the area with their families. They
never seemed like poor people to her, because of the warm
and generous way that they treated her. Referring to that
­formative memory, Ms. Chearavanont says, “I knew that
when I grew up I wanted to work for them.”
Ms. Chearavanont’s father later encouraged her to join
him in his charity work with orphans where her challenge was
to find a way for the charity to support the orphans’ living
and education costs through the chicken farm that they built.
“This was my first job,” she says; “My father asked me to
think about how to make the project sustainable. My father
once said, ‘In order to be successful, you need to think about
other people more than yourself.’” She has been doing charity
work for orphans since 1993; and these combined experiences
led her to establish a formal foundation called Buddharaksa
in 2002, which she currently runs with her corporate manage-
ment team.
The Buddharraksa Foundation supports religious schools, monasteries and nunneries
110
Now, as the CEO of the DT Group of Companies in Thai-
land, Ms. Chearavanont still does a lot of work with children,
and uses the business as a tool for doing good for society.
“I believe in children and the hope that they represent. Plant
seeds of positive thinking, a good heart, the will and capability
to help, so that when they grow up they can do whatever
they like.” She believes that early reinforcement of these char-
acteristics can lead to the development of compassionate
leaders, both in the community and on a national scale. Her
company emphasizes “the creation of good people; to be
­successful in anything, the benefits of the majority must be
taken into account.”
The Buddharaksa Foundation’s two main areas of focus
are education and religion in Thailand. The two sometimes
merge in the support of religious schools, monasteries and
nunneries.
The Buddharaksa Foundation’s Education and
Religious Giving Strategy
• Support institutions such as orphanages and schools that
already exist but need refurbishment and support.
• Enhance the teaching ability of teachers and institutions by
providing methodology training and learning technology.
• Incorporate small-scale entrepreneurial activities into
schools to help generate funding.
Faith and Education
The Buddharaksa Foundation supports students in need,
both in secular studies and in religious and nursing studies for
aspiring monks.
Support Development of Institutional Infrastructure
By constructing school dormitories and extra classrooms in
existing schools, more students can be accommodated. The
refurbishment of kitchen facilities and the provision of bio-gas
electricity generators supports a healthier and cleaner learn-
ing environment.
Support Teacher and Curriculum Development
Methodology and learning technology training equip teachers
with new strategies and material to inspire their students.
Installation of cable television systems with instructional con-
tent and provision of multimedia materials helps enhance the
learning experience for students. The foundation also pro-
vides educational material at temples, nunneries and monas-
teries.
Provide Sustainable Sources of Income
Building chicken farms at supported schools and monasteries
provides a consistent source of eggs for student and staff con-
sumption, and sales of the surplus generate income for the
institution. The foundation also finances restoration and con-
struction of religious centers and their facilities.
111
List of Sources for Country Reports:

The following is a list of sources for the information cited in the country reports.
Additionally, information was taken from the surveys we conducted.
Singapore:
1. Philanthropy thriving in newly rich Singapore
http://newsinfo.inquirer.net/breakingnews/world/view/20100815-286907/Philanthropy-thriving-in-newly-rich-Singapore
2. National Park Service: Giving Statistics
http://www.nps.gov/partnerships/fundraising_individuals_statistics.htm
3. Growing Singapore as a Philanthropy Hub
http://www.mof.gov.sg/budget_2007/budget_speech/subsection10.3.html
4. NVPC
http://www.nvpc.org.sg/pgm/others/nvpc_f_default_public.aspx
5. CHARITIES ACT-(CHAPTER 37)
http://statutes.agc.gov.sg/non_version/cgi-bin/cgi_retrieve.pl?actno=reved-37
6. Donations and Tax deductions
http://iras.gov.sg/irasHome/page04_ektid1274.aspx
7. Charity Portal
https://www.charities.gov.sg/charity/index.do
8. Ministry of Community Development, Youth and Sports MCYS
http://app1.mcys.gov.sg/Publications/AnnualReportsbytheCommissionerofCharities.aspx
9. The Housing & Development Board (HDB)- Two Steps Ahead Towards Sustainable Public Housing In
Singapore
http://www.hdb.gov.sg/fi10/fi10296p.nsf/PressReleases/CD095A7BDE91C7014825775E001856EA?OpenDocument
10. Ministry of Education Singapore- Education Statics Digest
http://www.moe.gov.sg/education/education-statistics-digest/files/esd-2010.pdf
11. Ministry of Health
http://www.moh.gov.sg/mohcorp/statistics.aspx?id=5964

China:
12. China to normalize charity industry
http://hausercenter.org/chinanpo/2011/03/china-to-normalize-charity-industry/
13. One Foundation sets the tempo
http://www.cdeclips.com/files/asiapdf/20110218/cdasiaweekly20110218p08.pdf
14. Beijing looks at laws on philanthropy
http://www.chinadaily.com.cn/china/2010-11/03/content_11498980.htm
15. China Civil Society Report: Charitable Donation in China
http://www.nautilus.org/publications/essays/napsnet/forum/2009-2010/09040XijinZhou.html
16. Charity in China expected to boom as private charity foundations emerge
http://china.globaltimes.cn/society/2010-11/589170.html
17. The International Center for Not-For-Profit Law (ICNL) – China
http://www.icnl.org/knowledge/ngolawmonitor/china.htm
18. Washington University Law: CHINA’S ATTITUDE TOWARD FOREIGN NGOs
http://law.wustl.edu/WUGSLR/Issues/Volume8_3/Yin.pdf
19. Chinese Philanthropy Lags a Booming Economy
http://foundationcenter.org/pnd/news/story.jhtml?id=311900008

112
India:
20. Buffett and Gates Prod India’s Wealthy to Be More Philanthropic
http://www.nytimes.com/2011/03/25/business/global/25rupee.html
21. Bain & Company: An overview of Philanthropy in India
http://www.bain.com/bainweb/PDFs/cms/Public/India_Sheth_Speech.pdf
22. US International Grant making- India
http://www.usig.org/countryinfo/india.asp
23. NOGs India-NGO Registration Methods
http://www.ngosindia.com/resources/ngo_registration.php
24. Ministry of Corporate Affairs Government of India-CORPORATE SOCIAL RESPONSIBILITY VOLUNTARY
GUIDE LINES 2009
http://www.mca.gov.in/Ministry/latestnews/CSR_Voluntary_Guidelines_24dec2009.pdf

Hong Kong:
25. Philanthropy in Hong Kong: Setting an Example for the Mainland
http://blog.socialventuregroup.com/svg/2010/06/philanthropy-in-hong-kong-setting-an-example-for-the-mainland.html
26. The Asia Pacific Philanthropy Consortium (APPC) - Hong Kong SAR - Philanthropy and the Third Sector:
Policy Environment
http://www.asiapacificphilanthropy.org/profile-hk4
27. Art and philanthropy in Hong Kong
http://www.ammado.com/community/102947/articles/12752
28. Give2Asia- Hong Kong SAR
http://give2asia.org/hongkong

Thailand:
29. Giving in Thailand
http://fundraisers-in-thailand.googlegroups.com
30. Asian Philanthropy Forum
http://www.asianphilanthropyforum.org/thailand/index.html
31. The Asia Pacific Philanthropy Consortium (APPC) –Thailand
http://www.asiapacificphilanthropy.org/node/22

Indonesia:
32. The Asia Pacific Philanthropy Consortium (APPC) –Indonesia
http://www.asiapacificphilanthropy.org/profile-indonesia4

Malaysia:
33. Hearts of gold: The business of philanthropy
http://biz.thestar.com.my/news/story.asp?file=/2009/1/17/business/2955351&sec=business
34. The Asia Pacific Philanthropy Consortium (APPC) –Malaysia
http://www.asiapacificphilanthropy.org/node/60
35. Philanthropy in the New Millennium
http://cenapmalaysia.wordpress.com/
36. Ministry of Higher Education Malaysia
http://jpt.mohe.gov.my/

113
Philippines:
37. The Asia Pacific Philanthropy Consortium (APPC) –Philippines
http://www.asiapacificphilanthropy.org/node/21
38. International Council on Management of Population Programmes ICOMP- DIALOGUE ON PHILANTHROPY
IN THE PHILIPPINES
http://www.icomp.org.my/web/Philanthropy/C__DATA_philanthropy.pdf

Japan:
39. In the wake of tragedy: Japan’s distinctive civil society traditions
http://www.philanthropydaily.com/?p=4933
40. The Asia Pacific Philanthropy Consortium (APPC) –Japan
http://www.asiapacificphilanthropy.org/node/59
41. The Association of Fundraising Professionals (AFP): Current Conditions and Development Strategies of
Philanthropy and Fundraising in Japan
http://www.afpnet.org/files/ContentDocuments/onishi_fundraising_japan.pdf
42. Japanese Companies Continue to Spend More than 400 Million Yen Each for Philanthropy Despite
the Economic Recession
http://www.japanfs.org/en/pages/030565.html
43. Global Giving Resource
http://globalgivingresource.com/japan.html
44. Philanthropy Northwest
http://www.philanthropynw.org/s_pnw/sec.asp?CID=18085&DID=46828
45. Asian Philanthropy Forum
http://www.asianphilanthropyforum.org/trends_in_philanthropy/page/4/
46. Nippon Foundation
http://www.nippon-foundation.or.jp/eng/current/The_White_Paper_of_Donation.html
47. Japan Foundation New York
http://www.jfny.org/userfiles/file/CSR_Report_USA.pdf
48. Private philanthropy to Japan post Earthquake
http://globalprosperity.wordpress.com/2011/03/30/private-philanthropy-to-japan-post-earthquake/
49. Responses From Charities to the Japan Earthquake and Pacific Tsunami
http://philanthropy.com/article/Charities-Respond-to-Pacific/126706/
50. Giving for Japan Disaster Tops $246.9-Million by End of First Month
http://philanthropy.com/article/Giving-for-Japan-Tops/127090/

114
Research Methodology

115
The target respondents for our research ­consisted of individuals,
groups of individuals, families, philanthropic foundations and trusts and
family-controlled businesses engaged in substantial philanthropic ­
activities that are principally based in:
• China
• Hong Kong
• India
• Indonesia
• Japan
As we were not researching corporate social responsibility
­initiatives or corporate giving, we only included a limited num-
ber of ­corporate respondents in circumstances in which (1) the
corporation was principally owned and controlled by an individ-
ual and (2) the individual and family conducted philanthropic
­activities substantially through the corporation.
Although specific targets as to wealth of individuals, families
and institutions or monetary value of philanthropic activities
were not established, the research sought to identify and target
the wealthier individuals and families and larger family philan-
thropies in the target countries. The pool of targeted respon-
dents was developed in each country through customized
research, personal and institutional contacts and family philan-
thropic associations.
The principal research tools used consisted of the following:
(1) a formal survey consisting of a multiple-choice series of
questions (made available in English, Bahasa [Malaysia], Bahasa
[Indonesia], Japanese, Mandarin and Thai); (2) informal, in-
depth interviews with academics, entrepreneurs, government
servants, philanthropists, professionals and social entrepre-
neurs; and (3) secondary research on articles, case studies, reg-
ulations and reports relevant to individual and family philan-
thropy.
116
• Malaysia
• Philippines
• Singapore
• Taiwan
• Thailand
For our research 203 respondents in the target countries
­completed the formal survey. In addition, we interviewed over
one hundred relevant individuals in the target countries.
Most of these surveys and interviews were conducted between
December 2010 and June 2011.
While we believe that we have obtained an adequate sampl-
ing of perspectives on family philanthropy in Asia, we encoun-
tered considerable challenges during our research. In a number
of cases, families had not systematically collated information
regarding their philanthropic activities. In other cases, data on
philanthropic contributions was intermingled with data on
activities relating to corporate social responsibility activities.
Some families were compelled by a strong cultural disposition
to maintain the confidentiality of their philanthropic activities.
Other families expressed concern regarding unwarranted gov-
ernmental scrutiny of their philanthropic activities. The matura-
tion of the sector will in part depend on such concerns being
adequately addressed and on more open sharing of informa-
tion, perspectives and best practices.
Challenges to Documenting Philanthropic Giving
By Lalitha Vaidyanathan, Managing Director, FSG Social Impact Consultants
Nidhi Reddy, Associate Director, Centre for Emerging Markets Solutions, Indian School of Business
This past year has been abuzz with exciting activity in
India’s philanthropic sector – from large gifts by industria-
lists such as Shiv Nadar, Azim Premji and GM Rao to the
­Buffett-Gates’ high profile visit. Against this backdrop, the
Indian School of Business (ISB), along with their knowledge
partner, FSG, launched a research study with the objective
of contributing to India’s understanding of the effectiveness
of its ­philanthropy. Through quantitative surveys and quali­
tative interviews, the project set out to document how
much the wealthiest Indians give, their motivations for giv-
ing, issues their giving was directed at and the barriers they
faced in giving. We learnt a great deal through the research
but the process was fraught with challenges. Here we share
the ­challenges we faced specifically in documenting the
level of giving amongst our largest donors.
One significant challenge arose from fragmentation in
­giving. As ownership in industrial houses that have been
in existence for multiple generations gets divided amongst
many different branches of the family, giving also becomes
fragmented amongst the many family members. While
many of these families have Trusts or Foundations that were
established by earlier generations (Sir Ratan Tata Trust,
­Pirojsha Godrej Foundation, Jamnalal Bajaj Foundation),
younger generation family members are giving of their own
wealth to causes beyond the activities of the Trusts. These
families often do not themselves have a complete picture of
all the giving that is occurring in the different branches of
the family.
Another challenge was that while India’s wealthiest families
generally felt comfortable discussing activities and giving
related to their Trusts, they were reluctant to share specifics
about their individual giving. They consider that to be
highly personal and not something to be spoken about
­publicly. In contrast, founders of industrial houses estab-
lished in the more recent past such as GMR Group, Biocon,
HCL, and Wipro, are just now setting up their foundations
and were hence, more comfortable discussing the giving
and activities of these institutions.
The other significant challenge we encountered was the
melding of personal giving with that of giving by the com-
pany. A significant number of the philanthropists we spoke
to channel their giving through their company foundation
or CSR program. For example, GM Rao pledged his entire
wealth of 1,540 crores to the GMR Varalakshmi Foundation,
the CSR arm of the GMR Group, Kiran Mazumdar Shaw
gives through the Biocon Foundation, Analjit Singh through
the Max India Foundation and so on. As a result, it is often
difficult to separate the giving between that which origi-
nated from the company versus that which originated from
the individual owner.
Philanthropy has a critical role to play in helping India
achieve inclusive growth. However, Indian philanthropists,
unlike their counterparts in most other advanced econo-
mies, lack information about what their peers are doing,
what approaches are working, and what gaps remain.
Thus, we conclude with this appeal – in order for Indian
­philanthropy to continue to become more effective and
­efficient, India’s largest givers need to get comfortable shar-
ing their experiences. We need to share not just anecdotal
feel-good stories, but hard data about the level of our giv-
ing, the impact of that giving and lessons about approaches
that lead to impact at India-scale.
117
Research Partners
The research and analysis for this report was undertaken on
a collaborative basis between INSEAD and UBS, with research
support being provided by Knowledge Platform and its local
partners.
UBS
UBS draws on its 150-year heritage to serve private, institu-
tional and corporate clients worldwide, as well as retail clients
in Switzerland. We combine our wealth management, invest-
ment banking and asset management businesses with our
Swiss operations to deliver superior financial solutions. Head-
quartered in Zurich and Basel, Switzerland, UBS has offices in
more than 50 countries, including all major financial centers,
and employs approximately 65,000 people.
The UBS Wealth Management division focuses on delivering
comprehensive financial services to high net worth and ultra
high net worth individuals around the world as well as private
and corporate clients in Switzerland with financial advice,
products and tools to fit their individual needs.
As one of the leading service providers to UHNW clients
worldwide, UBS is very active in philanthropy advisory
through its dedicated Philanthropy & Values-Based Investing
team.
118
UBS Philanthropy & Values-Based Investing
As one of the first banks engaging in philanthropy, our commit-
ment to this subject goes back many years. It’s a commitment
continually reaffirmed, reinforced and expanded.
UBS’s Philanthropy & Values-Based Investing team comprises
over 30 in-house experts who cater to all aspects of philan-
thropy, strategic charitable giving as well as investing with
social impact in a “one-stop” professional approach. In 2008
and 2011, UBS was named best private bank globally for Phi-
lanthropy Services (Euromoney, February 2011).
For newcomers as well as experienced philanthropists, UBS
offers strategic advice throughout all stages of the philan-
thropic lifecycle, from clarification of personal motivation and
objectives to design and implementation of a philanthropic
strategy. Strategic advice is complemented by cutting-edge
knowledge exchange and educational platforms such as the
Global Philanthropy Forum, which connects over 200 of the
world’s leading philanthropists every year. UBS also offers tai-
lored thematic education events and actively supports the
development of social entrepreneurship, partnering with
Ashoka in Visionaris Social Entrepreneurship Awards.
In addition to strategic advisory services, we also offer practi-
cal possibilities to donate to charitable projects on a global
scale. Over the past 10 years, the UBS Optimus Foundation
has enjoyed the support of in excess of 10,500 donors and
has granted more than CHF 100 million to around 260 proj-
ects globally.
The UBS Optimus Foundation supports over 100 projects
worldwide, of which 39 are dedicated to Asia, focusing on
the well-being of children in need. The foundation also offers
tailor-made, high-quality search and execution of philan-
thropic projects for, and in the name of, UBS clients.
For those interested in combining social and environmental
issues with financial criteria, UBS provides a broad range of
values-based investment solutions ranging from portfolio
screening services to specific themes (SRI thematic invest-
ments) as well as investment solutions combining social
impact with financial returns (impact investing).
Further information: www.ubs.com/philanthropy
INSEAD
As one of the world’s leading and largest graduate business
schools, INSEAD brings together people, cultures and ideas
from around the world to change lives and to transform organi-
zations. A global perspective and cultural diversity are reflected
in all aspects of INSEAD’s research and teaching.
With campuses in Europe (France), Asia (Singapore) and Abu
Dhabi, and a research center in Israel, INSEAD’s business educa-
tion and research spans three continents. 145 renowned faculty
members from 36 countries inspire more than 1,000 degree
participants in INSEAD’s MBA, Executive MBA and PhD pro-
grams. In addition, more than 9,500 executives participate in
INSEAD’s Executive Education programs.
This report has been led by faculty members at INSEAD’s Social
Entrepreneurship Initiative, which aims to help advance the
potential of social entrepreneurs to address the most pressing
global problems in a creative and resource effective way.
While social entrepreneurs have emerged in every sector and
nearly every market, they often lack the high-level business,
management, and strategy skills that have propelled the private
sector to its remarkable growth. INSEAD aims to leverage its
expertise in management education and training to develop
and deliver the world’s best executive training for social entre-
preneurs.
INSEAD’s pioneer Social Entrepreneurship Program (ISEP),
launched in 2005 and running annually on both the Fontaineb-
leau and Singapore campuses, has established itself as a valu-
able program for leading social entrepreneurs and the entry
ticket into a valuable life-long network of support and knowl-
edge sharing.
INSEAD’s social entrepreneurship research agenda aims to fos-
ter a two-way dialogue: advanced management thinking is
applied to the challenges of social entrepreneurs while the inno-
vative approach of social entrepreneurs is leveraged back into
business research and corporate practice. The Social Entrepre-
neurship Initiative is housed under both INSEAD’s Social Innova-
tion Centre and the Rudolf and Valeria Maag Centre for Entre-
preneurship. The Social Innovation Centre is a premier hub for
research and learning focused on the connection between busi-
ness and society. The Maag Centre is the catalyst at INSEAD for
innovations in entrepreneurship research, teaching and out-
reach.
For additional information on the INSEAD Social Entrepreneur-
ship Initiative, please visit http://www.insead.edu/se
INSEAD was principally represented by Mahboob Mahmood
and Filipe Santos.
Knowledge Platform
Knowledge Platform is a next-generation knowledge solutions
company with its headquarters in Singapore, and offices in
Delhi, Dubai, Islamabad and Tokyo. Knowledge Platform was
responsible for identifying and contacting survey respondents,
collating and inputting survey data, conducting secondary
research and managing the research and drafting process. The
Knowledge Platform team included Jasper Liao, Ghaniah Ejaz,
Fadzidah Binte Dawood, Masami Kashiwagi, Li Xiao, Sajid Raz-
zaque, Monica Sabharwal and Bryan Wang.
Knowledge Platform was closely supported in its research work
by the following individuals and institutions: Jaturong
Boonyarattansoonton (Thailand); Charitarian, represented by
Clare Pearson and Wang Liwei (China); Kazunobu Sakai and
Koji Sakurai (Japan); Community and Family Services Interna-
tional, represented by Steven Muncy and George Ongkeko
(Philippines); Ndimensions Research and Training Services Pri-
vate Limited, represented by Lokendra Chuhan (India); and
Wen-Hwa Su (Taiwan).
119
Appendix

Publishers UBS Philanthropy Services

INSEAD

UBS Philanthropy Services

Project management: Jenny Santi
Editorial board: Mathieu Cantegreil, David Evans, Jenny Santi, Mathias
­Terheggen, Christina Tung
Interviews: Mathieu Cantegreil, Dweep Chanana, June Lee, Megumi
Nozawa, Jenny Santi, Christina Tung, Chikashi Yoshida

INSEAD Authors:
Mahboob Mahmood
Adjunct Professor of Entrepreneurship

Filipe Santos
Associate Professor of Entrepreneurship
Director – Maag International Centre for Entrepreneurship
Academic Director – Social Entrepreneurship Initiative

Research services provider Researchers: Ghaniah Ejaz, Jasper Liao

Contact Zurich Singapore Hong Kong

UBS AG UBS AG UBS AG
Philanthropy Services Philanthropy Services 52/F Two International
Post Box One Raffles Quay Finance Centre
CH-8098 Zürich #50-01 North Tower 8 Finance Street, Central
Switzerland Singapore 048583 Hong Kong
Tel. +41–44–234–1111 Tel. +65–6495–8000 Tel. +852–2971–8888

www.ubs.com/philanthropy

120
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